Would Shareholders Who Purchased China Silver Group's (HKG:815) Stock Three Years Be Happy With The Share price Today?

If you love investing in stocks you're bound to buy some losers. But long term China Silver Group Limited (HKG:815) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 58% in that time. The good news is that the stock is up 7.2% in the last week.

View our latest analysis for China Silver Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

China Silver Group saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Extraordinary items contributed to this situation. Due to the loss, it's not easy to use EPS as a reliable guide to the business. However, we can say we'd expect to see a falling share price in this scenario.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on China Silver Group's earnings, revenue and cash flow.

A Different Perspective

China Silver Group shareholders have received returns of 22% over twelve months, which isn't far from the general market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 8% over the last five years. While 'turnarounds seldom turn' there are green shoots for China Silver Group. It's always interesting to track share price performance over the longer term. But to understand China Silver Group better, we need to consider many other factors. Even so, be aware that China Silver Group is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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 HK 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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