Investors Who Bought Parkson Retail Asia (SGX:O9E) Shares Five Years Ago Are Now Down 98%

Simply Wall St

We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Spare a thought for those who held Parkson Retail Asia Limited (SGX:O9E) for five whole years - as the share price tanked 98%. We also note that the stock has performed poorly over the last year, with the share price down 68%.



See our latest analysis for Parkson Retail Asia


In the last five years Parkson Retail Asia saw its revenue shrink by 1.3% per year. That's not what investors generally want to see. The share price fall of 55% (per year, over five years) is a stern reminder that money-losing companies are expected to grow revenue. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. That is not really what the successful investors we know aim for.


SGX:O9E Income Statement, May 26th 2019

Take a more thorough look at Parkson Retail Asia's financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Parkson Retail Asia shareholders are down 68% for the year. Unfortunately, that's worse than the broader market decline of 5.2%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 53% per year over five years. 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. You could get a better understanding of Parkson Retail Asia's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.



