The Mobilicom (ASX:MOB) Share Price Is Up 21% And Shareholders Are Holding On

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Mobilicom Limited (ASX:MOB) shareholders might understandably be very concerned that the share price has dropped 32% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 21% in that time.

Check out our latest analysis for Mobilicom

Mobilicom isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Mobilicom grew its revenue by 74% last year. That's stonking growth even when compared to other loss-making stocks. The solid 21% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Mobilicom in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

ASX:MOB Income Statement, July 17th 2019
ASX:MOB Income Statement, July 17th 2019

If you are thinking of buying or selling Mobilicom stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Mobilicom boasts a total shareholder return of 21% for the last year. Unfortunately the share price is down 32% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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