Stock Analysis

Investors five-year losses grow to 83% as the stock sheds US$8.8m this past week

  •  Updated
NasdaqCM:SGLY
Source: Shutterstock

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. It hits us in the gut when we see fellow investors suffer a loss. For example, we sympathize with anyone who was caught holding Singularity Future Technology Ltd. (NASDAQ:SGLY) during the five years that saw its share price drop a whopping 83%. The falls have accelerated recently, with the share price down 28% in the last three months. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

Since Singularity Future Technology has shed US$8.8m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

Though if you're not interested in researching what drove SGLY's performance, we have a free list of interesting investing ideas to potentially inspire your next investment!

Singularity Future Technology isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.

In the last five years Singularity Future Technology saw its revenue shrink by 13% per year. That puts it in an unattractive cohort, to put it mildly. So it's not that strange that the share price dropped 13% per year in that period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.

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

earnings-and-revenue-growth
NasdaqCM:SGLY Earnings and Revenue Growth September 7th 2022

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

A Different Perspective

While it's certainly disappointing to see that Singularity Future Technology shares lost 14% throughout the year, that wasn't as bad as the market loss of 19%. What is more upsetting is the 13% per annum loss investors have suffered over the last half decade. While the losses are slowing we doubt many shareholders are happy with the stock. It's always interesting to track share price performance over the longer term. But to understand Singularity Future Technology better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Singularity Future Technology (including 1 which is concerning) .

We will like Singularity Future Technology 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 US exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Singularity Future Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NasdaqCM:SGLY

Singularity Future Technology

Singularity Future Technology Ltd. develops solutions for interconnected AI networks in the revolutionized AI and Blockchain suppl management area and establishes crypto mining pools.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth0
Past Performance0
Financial Health3
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Mediocre balance sheet with weak fundamentals.