Investors Who Bought Daehan Green Power (KOSDAQ:060900) Shares A Year Ago Are Now Up 145%

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Daehan Green Power Corporation (KOSDAQ:060900). Its share price is already up an impressive 145% in the last twelve months. In more good news, the share price has risen 39% in thirty days. However, the stock hasn't done so well in the longer term, with the stock only up 6.3% in three years.

Check out our latest analysis for Daehan Green Power

Because Daehan Green Power 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Daehan Green Power saw its revenue shrink by 78%. We're a little surprised to see the share price pop 145% 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 image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Daehan Green Power rewarded shareholders with a total shareholder return of 145% over the last year. That's better than the annualized TSR of 2.1% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Daehan Green Power on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Daehan Green Power better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Daehan Green Power (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

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 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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