What Type Of Returns Would Inmobiliaria Manquehue's(SNSE:MANQUEHUE) Shareholders Have Earned If They Purchased Their SharesYear Ago?

It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the Inmobiliaria Manquehue S.A. (SNSE:MANQUEHUE) share price is down 27% in the last year. That contrasts poorly with the market decline of 9.0%. Inmobiliaria Manquehue hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time.

Check out our latest analysis for Inmobiliaria Manquehue

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Inmobiliaria Manquehue saw its earnings per share drop below zero. Some investors no doubt dumped the stock as a result. Of course, if the company can turn the situation around, investors will likely profit.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

We doubt Inmobiliaria Manquehue shareholders are happy with the loss of 26% over twelve months (even including dividends). That falls short of the market, which lost 9.0%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 0.6%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Inmobiliaria Manquehue is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CL exchanges.

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