It's not possible to invest over long periods without making some bad investments. But really bad investments should be rare. So spare a thought for the long term shareholders of Hainan Meilan International Airport Company Limited (HKG:357); the share price is down a whopping 83% in the last three years. That'd be enough to cause even the strongest minds some disquiet. And more recent buyers are having a tough time too, with a drop of 58% in the last year. The falls have accelerated recently, with the share price down 41% in the last three months. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
See our latest analysis for Hainan Meilan International Airport
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Hainan Meilan International Airport saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
While the broader market gained around 11% in the last year, Hainan Meilan International Airport shareholders lost 58%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Hainan Meilan International Airport better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Hainan Meilan International Airport you should know about.
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 Hong Kong exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
悪い投資をせずに長期間投資することはできません。ただし、本当に悪い投資はまれです。 Hainan Meilan International Airport 株式会社(HKG:357)の長期株主を考えると、過去3年間で株価が83%も下落したことは、最も強力なマインドでも不安を引き起こすには十分すぎるでしょう。そして、より最近の購入者も苦戦しており、過去1年間には58%の下落があります。 そして、ここ最近は加速しており、過去3か月で株価は41%下落しています。私たちは本当にこのシナリオにおける株主たちを心から気遣っています。分散投資の重要性を思い出す良い機会であり、お金以外にも人生にはもっとあります。
株主にとって辛い過去1週間だったので、基本情報を調べてみましょう。
Hainan Meilan International Airportについての最新分析を参照してください
広範な市場は、過去1年間で約11%上昇した一方で、Hainan Meilan International Airportの株主は58%下落しました。ただし、最高の株式であっても、12か月の期間中に市場を下回ることがあります。残念ながら、昨年のパフォーマンスは5年間で年間2%の合計損失に直面している株主たちにとって悪いランを締めくくるものです。Baron Rothschildは、投資家は「街頭に血が流れるときに買う」と言ったことがあると思いますが、まず高品質のビジネスを買うことをお勧めします。長期的な株価パフォーマンスを追跡するのは常に興味深いです。しかし、Hainan Meilan International Airportを理解するためには、多くの他の要因を考慮する必要があります。リスクを考えてみてください。 どの会社にもリスクがありますが、Hainan Meilan International Airportについては、知っておく必要がある1つの警告サインがあります。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。