While stock selection is not easy, for those who wish to persevere and learn, it is possible to buy stocks of large companies and generate wonderful returns. When you buy and own the right business, the returns can make a huge difference to you and your family. For example, the POSaBIT Systems Corporation (CSE: PBIT) the stock price has climbed 793% towards the moon in just one year. Another good news is that the share price has climbed 13% in thirty days. This could be related to recent financial results which were recently released – you can check the most recent data by reading our company report. POSaBIT Systems hasn’t been listed for a long time, so it’s still not clear if it’s a long-term winner.
Anyone who has stood for this rewarding race would probably want to talk about it.
See our latest review for POSaBIT systems
Since POSaBIT Systems has not made a profit in the last twelve months, we will focus on revenue growth to get a quick view of its business development. Shareholders of unprofitable companies generally expect strong revenue growth. As you can imagine, rapid revenue growth, when sustained, often leads to rapid profit growth.
POSaBIT Systems increased its turnover by 234% last year. It’s a head and shoulders above most loss making companies. But the share price really exploded in response, gaining 793% as mentioned earlier. Despite the strong growth, it is certainly possible that the market has become a bit overexcited. So this seems like a great candidate on the watch list for investors looking for high growth inflection points.
You can see how income and income have changed over time in the image below (click on the graph to see the exact values).
It’s probably worth noting that we saw some significant insider buying in the last quarter, which we see as positive. That said, we believe earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a careful review of historical growth trends, available here.
A different perspective
It is nice to see that POSaBIT Systems shareholders have gained 793% over the past year. A substantial part of that gain came in the past three months, with the stock rising 205% during that time. This suggests that the company continues to attract new investors. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really understand better, we have to take other information into account as well. For example, we discovered 3 warning signs for POSaBIT systems (1 makes us a little uncomfortable!) Which you should be aware of before investing here.
POSaBIT Systems is not the only one to buy. So take a look at this free list of growing companies with insider buying.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on CA exchanges.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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