If You Had Bought Genomic Vision Société Anonyme (EPA:GV) Shares A Year Ago You'd Have Earned 175% Returns

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. Take, for example Genomic Vision Société Anonyme (EPA:GV). Its share price is already up an impressive 175% in the last twelve months. It's up an even more impressive 193% over the last quarter. On the other hand, longer term shareholders have had a tougher run, with the stock falling 72% in three years.

Check out our latest analysis for Genomic Vision Société Anonyme

We don't think Genomic Vision Société Anonyme's revenue of €1,943,000 is enough to establish significant demand. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Genomic Vision Société Anonyme has the funding to invent a new product before too long.

As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Of course, if you time it right, high risk investments like this can really pay off, as Genomic Vision Société Anonyme investors might know.

Genomic Vision Société Anonyme had liabilities exceeding cash by €1.2m when it last reported in June 2020, according to our data. That makes it extremely high risk, in our view. So we're surprised to see the stock up 78% in the last year , but we're happy for holders. Investors must really like its potential. You can see in the image below, how Genomic Vision Société Anonyme's cash levels have changed over time (click to see the values).

It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Given that situation, many of the best investors like to check if insiders have been buying shares. It's often positive if so, assuming the buying is sustained and meaningful. You can click here to see if there are insiders buying.

A Different Perspective

It's good to see that Genomic Vision Société Anonyme has rewarded shareholders with a total shareholder return of 175% in the last twelve months. Notably the five-year annualised TSR loss of 14% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Genomic Vision Société Anonyme better, we need to consider many other factors. Take risks, for example - Genomic Vision Société Anonyme has 5 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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This article by Simply Wall St is general in nature. 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.
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