The Manhattan Resources (SGX:L02) Share Price Is Up 65% And Shareholders Are Holding On

Manhattan Resources Limited (SGX:L02) shareholders have seen the share price descend 15% over the month. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 65% in that time.

Check out our latest analysis for Manhattan Resources

Manhattan Resources wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Manhattan Resources actually shrunk its revenue over the last year, with a reduction of 44%. Despite the lack of revenue growth, the stock has returned a solid 65% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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

If you are thinking of buying or selling Manhattan Resources stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Manhattan Resources shareholders have received a total shareholder return of 65% over one year. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Manhattan Resources (of which 2 are potentially serious!) you should know about.

We will like Manhattan Resources 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 SG 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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