Easy Come, Easy Go: How Aalborg Boldspilklub (CPH:AAB) Shareholders Got Unlucky And Saw 77% Of Their Cash Evaporate

Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who held Aalborg Boldspilklub A/S (CPH:AAB) for five whole years - as the share price tanked 77%. And we doubt long term believers are the only worried holders, since the stock price has declined 43% over the last twelve months. Even worse, it's down 20% in about a month, which isn't fun at all. We do note, however, that the broader market is down 12% in that period, and this may have weighed on the share price.

View our latest analysis for Aalborg Boldspilklub

Aalborg Boldspilklub isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over half a decade Aalborg Boldspilklub reduced its trailing twelve month revenue by 14% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not altogether surprising to see the share price down 25% per year in the same time 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Aalborg Boldspilklub's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market gained around 2.4% in the last year, Aalborg Boldspilklub shareholders lost 43%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 25% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Aalborg Boldspilklub better, we need to consider many other factors. For instance, we've identified 5 warning signs for Aalborg Boldspilklub (3 shouldn't be ignored) that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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