Shareholders Are Thrilled That The SPECO (KOSDAQ:013810) Share Price Increased 168%

SPECO Ltd. (KOSDAQ:013810) shareholders have seen the share price descend 19% over the month. But that doesn't detract from the splendid returns of the last year. Indeed, the share price is up an impressive 168% in that time. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.

See our latest analysis for SPECO

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 SPECO grew its earnings per share (EPS) by 106%. The share price gain of 168% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It is of course excellent to see how SPECO has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling SPECO stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that SPECO shareholders have received a total shareholder return of 170% over one year. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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 - SPECO has 4 warning signs (and 3 which are a bit concerning) 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 KR 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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