Would Shareholders Who Purchased MotorCycle Holdings'(ASX:MTO) Stock Three Years Be Happy With The Share price Today?
It is a pleasure to report that the MotorCycle Holdings Limited (ASX:MTO) is up 146% in the last quarter. Meanwhile over the last three years the stock has dropped hard. Regrettably, the share price slid 58% in that period. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the three years that the share price fell, MotorCycle Holdings’s earnings per share (EPS) dropped by 14% each year. The share price decline of 25% is actually steeper than the EPS slippage. So