If You Had Bought Takung Art (NYSEMKT:TKAT) Shares A Year Ago You'd Have Earned 747% Returns

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Takung Art Co., Ltd. (NYSEMKT:TKAT) share price rocketed moonwards 747% in just one year. On top of that, the share price is up 571% in about a quarter. Looking back further, the stock price is 307% higher than it was three years ago.

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

Check out our latest analysis for Takung Art

Because Takung Art 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Takung Art's revenue grew by 71%. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 747% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

We're pleased to report that Takung Art shareholders have received a total shareholder return of 747% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 18% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Takung Art better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Takung Art (at least 2 which are potentially serious) , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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