Further weakness as Sino Prima Gas Technology (SZSE:300483) drops 10% this week, taking five-year losses to 59%

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example, after five long years the Sino Prima Gas Technology Co., Ltd. (SZSE:300483) share price is a whole 59% lower. That's not a lot of fun for true believers. We also note that the stock has performed poorly over the last year, with the share price down 34%. On top of that, the share price is down 10% in the last week.

If the past week is anything to go by, investor sentiment for Sino Prima Gas Technology isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Sino Prima Gas Technology

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Over five years Sino Prima Gas Technology's earnings per share dropped significantly, falling to a loss, with the share price also lower. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But we would generally expect a lower price, given the situation.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Sino Prima Gas Technology's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 9.6% in the twelve months, Sino Prima Gas Technology shareholders did even worse, losing 34%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Case in point: We've spotted 2 warning signs for Sino Prima Gas Technology you should be aware of, and 1 of them is a bit unpleasant.

But note: Sino Prima Gas Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.