BLIS Technologies (NZSE: BLT) Marvelous Share Price Increase of 341% Shows How Capitalism Can Create Wealth
Investing can be difficult, but we are inspired by the potential of individual action to pay off. Not all choices can be winners, but when you pick the right stock, you can Win big. Take, for example, the BLIS Technologies Limited (NZSE: BLT), which has climbed 341% in three years. It even increased by 32% last week.
Check out our latest review for BLIS Technologies
We do not believe that BLIS Technologies’ modest year over year profit is currently the focus of the market. We think income is probably a better guide. Generally speaking, we would consider a stock like this alongside loss-making companies, simply because the amount of profit is so small. It would be hard to believe in a more profitable future without revenue growth.
Over the past three years, BLIS Technologies has increased its turnover by 24% per year. That’s way above most nonprofit businesses. And it’s not just incomes that are taking off. The share price is up 64% per year during this period. It’s always tempting to take a profit after such a rise in the share price, but high growth companies like BLIS Technologies can sometimes maintain strong growth for many years. In fact, it might be time to put it on your watchlist, if you’re not already familiar with the title.
Below you can see how earnings and income have evolved over time (find out the exact values by clicking on the image).
Take a closer look at the financial health of BLIS Technologies with this free report on its balance sheet.
A different perspective
BLIS Technologies investors had a difficult year, with a total loss of 3.8%, against a market gain of around 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer-term investors would not be so unhappy, since they would have gained 10%, each year, over five years. The recent sell-off may be an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. 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. Like risks, for example. Every business has them, and we’ve spotted 5 warning signs for BLIS Technologies (1 of which should not be ignored!) that you should know.
If you are like me then you do not want to miss it free list of growing companies that insiders buy.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading on the New Zealand Stock 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 material. Simply Wall St has no position in any of the stocks mentioned.
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