Can You Imagine How Jubilant Thumbage's (KOSDAQ:208640) Shareholders Feel About Its 210% Share Price Gain?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Thumbage Co., Ltd. (KOSDAQ:208640) share price had more than doubled in just one year - up 210%. In more good news, the share price has risen 0.3% in thirty days. On the other hand, longer term shareholders have had a tougher run, with the stock falling 65% in three years.

Check out our latest analysis for Thumbage

Because Thumbage 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 Thumbage saw its revenue shrink by 41%. So we would not have expected the share price to rise 210%. 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

We're pleased to report that Thumbage rewarded shareholders with a total shareholder return of 210% over the last year. This recent result is much better than the 17% drop suffered by shareholders each year (on average) over the last three. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It's always interesting to track share price performance over the longer term. But to understand Thumbage better, we need to consider many other factors. For example, we've discovered 4 warning signs for Thumbage (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

We will like Thumbage better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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