Some stocks are best avoided. We don’t wish catastrophic capital loss on anyone. Imagine if you held Wai Yuen Tong Medicine Holdings Limited (HKG:897) for half a decade as the share price tanked 92%. Shareholders have had an even rougher run lately, with the share price down 32% in the last 90 days.
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.
View our latest analysis for Wai Yuen Tong Medicine Holdings
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.