The Sciuker Frames (BIT:SCK) Share Price Has Gained 242%, So Why Not Pay It Some Attention?

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Sciuker Frames S.p.A. (BIT:SCK) share price has soared 242% return in just a single year. Shareholders are also celebrating an even better 248% rise, over the last three months. Sciuker Frames hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Sciuker Frames

Given that Sciuker Frames only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last year Sciuker Frames saw its revenue shrink by 25%. We're a little surprised to see the share price pop 242% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

If you are thinking of buying or selling Sciuker Frames stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Sciuker Frames boasts a total shareholder return of 242% for the last year. And the share price momentum remains respectable, with a gain of 248% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Sciuker Frames (at least 2 which are significant) , and understanding them should be part of your investment process.

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 IT 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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