Some Biotec Pharmacon (OB:BIOTEC) Shareholders Have Taken A Painful 80% Share Price Drop

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Anyone who held Biotec Pharmacon ASA (OB:BIOTEC) for five years would be nursing their metaphorical wounds since the share price dropped 80% in that time. And some of the more recent buyers are probably worried, too, with the stock falling 30% in the last year. Unhappily, the share price slid 3.5% in the last week.

Check out our latest analysis for Biotec Pharmacon

Biotec Pharmacon isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over five years, Biotec Pharmacon grew its revenue at 15% per year. That's a pretty good rate for a long time period. So the stock price fall of 27% per year seems pretty steep. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.

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

A Different Perspective

While the broader market lost about 9.9% in the twelve months, Biotec Pharmacon shareholders did even worse, losing 30%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 27% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before spending more time on Biotec Pharmacon it might be wise to click here to see if insiders have been buying or selling shares.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.