Grand Ocean Advanced Resources (HKG:65) shareholders are up 67% this past week, but still in the red over the last year

It is doubtless a positive to see that the Grand Ocean Advanced Resources Company Limited (HKG:65) share price has gained some 87% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 49% in a year, falling short of the returns you could get by investing in an index fund.

While the stock has risen 67% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Grand Ocean Advanced Resources

Given that Grand Ocean Advanced Resources didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Grand Ocean Advanced Resources' revenue didn't grow at all in the last year. In fact, it fell 23%. That looks pretty grim, at a glance. The stock price has languished lately, falling 49% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Grand Ocean Advanced Resources stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Grand Ocean Advanced Resources shareholders are down 49% for the year. Unfortunately, that's worse than the broader market decline of 16%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% 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. It's always interesting to track share price performance over the longer term. But to understand Grand Ocean Advanced Resources better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Grand Ocean Advanced Resources (of which 1 is a bit unpleasant!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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