Investors Who Bought Comtec Solar Systems Group (HKG:712) Shares A Year Ago Are Now Up 675%

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you buy and hold the right company, the returns can make a huge difference to both you and your family. In the case of Comtec Solar Systems Group Limited (HKG:712), the share price is up an incredible 675% in the last year alone. On top of that, the share price is up 656% in about a quarter. Zooming out, the stock is actually down 17% in the last three years.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Comtec Solar Systems Group

Because Comtec Solar Systems Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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.

Comtec Solar Systems Group actually shrunk its revenue over the last year, with a reduction of 61%. This is in stark contrast to the splendorous stock price, which has rocketed 675% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

We're pleased to report that Comtec Solar Systems Group shareholders have received a total shareholder return of 675% over one year. Notably the five-year annualised TSR loss of 10% 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. 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. Take risks, for example - Comtec Solar Systems Group has 6 warning signs (and 2 which shouldn't be ignored) we think you should know about.

Comtec Solar Systems Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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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