Imagine Holding Optiemus Infracom (NSE:OPTIEMUS) Shares While The Price Zoomed 733% Higher

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. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Optiemus Infracom Limited (NSE:OPTIEMUS) share price is up a whopping 733% in the last year, a handsome return in a single year. It's also up 104% in about a month. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. Unfortunately the longer term returns are not so good, with the stock falling 23% in the last three years.

It really delights us to see such great share price performance for investors.

Check out our latest analysis for Optiemus Infracom

Optiemus Infracom isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Optiemus Infracom actually shrunk its revenue over the last year, with a reduction of 71%. So it's very confusing to see that the share price gained a whopping 733%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Optiemus Infracom's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Optiemus Infracom shareholders have gained 733% (in total) over the last year. That certainly beats the loss of about 7% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. To that end, you should learn about the 2 warning signs we've spotted with Optiemus Infracom (including 1 which shouldn't be ignored) .

But note: Optiemus Infracom may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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