Announcing: Vobile Group (HKG:3738) Stock Soared An Exciting 616% In The Last Year

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. While not every stock performs well, when investors win, they can win big. For example, the Vobile Group Limited (HKG:3738) share price rocketed moonwards 616% in just one year. It's also good to see the share price up 193% over the last quarter. Vobile Group hasn't been listed for long, so it's still not clear if it is a long term winner.

Anyone who held for that rewarding ride would probably be keen to talk about it.

Check out our latest analysis for Vobile Group

While Vobile Group made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Vobile Group's revenue grew by 103%. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 616% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

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 consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Vobile Group will earn in the future (free profit forecasts).

A Different Perspective

Vobile Group boasts a total shareholder return of 616% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 193% in that time. This suggests the company is continuing to win over new investors. 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. Case in point: We've spotted 3 warning signs for Vobile Group you should be aware of, and 1 of them is a bit concerning.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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