It may seem bad, but when you buy a stock (without leverage) the worst thing that can happen is that the share price goes to zero. But if the company is successful, you can earn much more than 100%.
For example, Schnitzer Steel Industries, Inc. the share price is 131% higher than three years ago. What a great result for those who hold the stock! The 24% gain in the last three months also pleased the shareholders.
As it's been a strong week for Schnitzer Steel Industries shareholders, let's take a look at key long-term trends.
In the words of Benjamin Graham: In the short run the market is a voting machine, but in the long run it is a weighing machine. By comparing earnings per share (EPS) with share price changes over time, we can understand how investor attitudes towards a company change over time.
Schnitzer Steel Industries has been profitable over the past three years. Given the importance of this milestone, it's not overly surprising that the share price has soared strongly.
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