This month we saw the Limited integrated multimedia technology (NASDAQ: IMTE) up 31%. But in the last three years we’ve seen a pretty big drop. Unfortunately, the share price fell 50% during this time. So it’s really good to see an improvement. While many would remain nervous, there could be further gains if the company can do its best.
With that in mind, it’s worth seeing if the underlying fundamentals of the business have been driving long-term performance, or if there are any gaps.
Since Integrated Media Technology has not made a profit in the past twelve months, we will focus on revenue growth to get a quick view of its business development. Generally speaking, companies with no profits are expected to increase their income every year, and at a good rate. Indeed, the rapid growth in income can be easily extrapolated to the expected profits, often of considerable size.
Over the past three years, Integrated Media Technology’s revenue has fallen by 50% per year. This means that its income trend is very low compared to other loss making companies. With no declining profits and income, it’s no surprise that investors ditched stocks, pushing the price down 14% per year during that time. Bag holders or “baggies” are people who buy more shares when the price collapses. They are then left to “hold the bag” if the shares prove to be worthless. After losing money on a declining company with a drop in the stock price, we are still reviewing whether keen bag holders are still offering us a reasonable exit price.
The company’s revenue and profits (over time) are shown in the image below (click to see exact numbers).
NasdaqCM: IMTE Profits and Revenue Growth September 11, 2021
This free interactive report on Integrated Media Technology balance sheet strength is a great place to start if you want to dig deeper into your stock research.
A different perspective
Fortunately, Integrated Media Technology’s total shareholder return last year was 48%. This certainly beats the loss of about 14% per year over three years. It may well be that the company has recovered, or that it has regained investor confidence. It is always interesting to follow the evolution of stock prices over the long term. But to better understand embedded media technology, there are many other factors that we need to consider. Concrete example: we have spotted 5 warning signs for integrated multimedia technology you need to be aware, and 2 of them are potentially serious.
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on US stock exchanges.
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