Tibet Summit ResourcesLtd (SHSE:600338 shareholders incur further losses as stock declines 4.1% this week, taking three-year losses to 69%

Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term Tibet Summit Resources Co.,Ltd. (SHSE:600338) shareholders. Regrettably, they have had to cope with a 69% drop in the share price over that period. Shareholders have had an even rougher run lately, with the share price down 15% in the last 90 days.

After losing 4.1% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Tibet Summit ResourcesLtd

Tibet Summit ResourcesLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years Tibet Summit ResourcesLtd saw its revenue shrink by 16% per year. That means its revenue trend is very weak compared to other loss making companies. Arguably, the market has responded appropriately to this business performance by sending the share price down 19% (annualized) in the same time period. Bagholders or 'baggies' are people who buy more of a stock as the price collapses. They are then left 'holding the bag' if the shares turn out to be worthless. After losing money on a declining business with falling stock price, we always consider whether eager bagholders are still offering us a reasonable exit price.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling Tibet Summit ResourcesLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Tibet Summit ResourcesLtd shareholders gained a total return of 5.9% during the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 2% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Tibet Summit ResourcesLtd is showing 1 warning sign in our investment analysis , you should know about...

We will like Tibet Summit ResourcesLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.