If You Had Bought Solstad Offshore (OB:SOFF) Shares A Year Ago You'd Have Earned 677% Returns

For many, the main point of investing in the stock market is to achieve spectacular returns. When you find (and hold) a big winner, you can markedly improve your finances. For example, Solstad Offshore ASA (OB:SOFF) has generated a beautiful 677% return in just a single year. It's up an even more impressive 1,920% in about a month. It is also impressive that the stock is up 76% over three years, adding to the sense that it is a real winner.

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for Solstad Offshore

Because Solstad Offshore 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Solstad Offshore saw its revenue grow by 1.5%. That's not a very high growth rate considering it doesn't make profits. So the 677% gain in just twelve months is completely unexpected. It's great to see that some have made big profits, but we aren't so sure that the increase is justified. This is an example of the huge profits some lucky shareholders occasionally make on growth stocks.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Solstad Offshore has rewarded shareholders with a total shareholder return of 677% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Solstad Offshore better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Solstad Offshore (including 2 which is are concerning) .

Of course Solstad Offshore may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NO exchanges.

If you’re looking to trade Solstad Offshore, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.