FingerTango (HKG:6860) Shareholders Booked A 21% Gain In The Last Year

A diverse portfolio of stocks will always have winners and losers. But the goal is to pick stocks that do better than average. FingerTango Inc. (HKG:6860) has done well over the last year, with the stock price up 21% beating the market return of 18% (not including dividends). FingerTango hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for FingerTango

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...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year, FingerTango actually saw its earnings per share drop 31%.

So we don't think that investors are paying too much attention to EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

Unfortunately FingerTango's fell 11% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at FingerTango's financial health with this free report on its balance sheet.

A Different Perspective

In the last year the market returned about 23%, and FingerTango generated a TSR of 21% for its shareholders. And the stock has been on a nice little run lately, with the price climbing 30% higher in 90 days. This suggests the share price maintains some momentum, and investors are taking a more positive view of the stock. 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. Take risks, for example - FingerTango has 3 warning signs (and 2 which are potentially serious) we think you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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