Energy Resources of Australia (ASX:ERA investor three-year losses grow to 87% as the stock sheds AU$133m this past week

Simply Wall St.10-22

As every investor would know, not every swing hits the sweet spot. But really bad investments should be rare. So consider, for a moment, the misfortune of Energy Resources of Australia Ltd (ASX:ERA) ...

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So consider, for a moment, the misfortune of Energy Resources of Australia Ltd (ASX:ERA) ...</p>\n\n<a href=\"https://finance.yahoo.com/news/energy-resources-australia-asx-era-200201946.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_au","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Energy Resources of Australia (ASX:ERA investor three-year losses grow to 87% as the stock sheds AU$133m this past week</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEnergy Resources of Australia (ASX:ERA investor three-year losses grow to 87% as the stock sheds AU$133m this past week\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-22 04:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/energy-resources-australia-asx-era-200201946.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>As every investor would know, not every swing hits the sweet spot. But really bad investments should be rare. So consider, for a moment, the misfortune of Energy Resources of Australia Ltd (ASX:ERA) ...</p>\n\n<a href=\"https://finance.yahoo.com/news/energy-resources-australia-asx-era-200201946.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7083","symbol_name":"煤与消费用燃料","start_time":0,"source_url":"https://finance.yahoo.com/news/energy-resources-australia-asx-era-200201946.html","article_id":"2477819964","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/3f1Nyxztp45hZDY4CTB.SQ--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/f5802af928dd695617f541e54eb6c1ef"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477819964","pubTimestamp":1729540921,"sourceInfo":{"source_id":"yahoofinance_au","name":"Yahoo Finance AU"},"weMediaInfo":null,"summary":"As every investor would know, not every swing hits the sweet spot. But really bad investments should be rare. So consider, for a moment, the misfortune of Energy Resources of Australia Ltd  investors who have held the stock for three years as it declined a whopping 99%. That would certainly shake our confidence in the decision to own the stock. And the ride hasn't got any smoother in recent times over the last year, with the price 88% lower in that time. Shareholders have had an even rougher run lately, with the share price down 89% in the last 90 days. While a drop like that is definitely a body blow, money isn't as important as health and happiness.Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.Check out our latest analysis for Energy Resources of Australia. Investors in Energy Resources of Australia had a tough year, with a total loss of 56%, against a market gain of about 25%. Even the share prices of good stocks dro","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7083":"煤与消费用燃料","XAO.AU":"标普/澳交所 普通股指数","XJO.AU":"标普/澳交所 200指数","XKO.AU":"标普/澳交所 300指数","ERA.AU":"ENERGY RESOURCES OF AUST"},"translate_title":"澳大利亚能源资源公司(ASX：ERA investor)三年亏损增至87%，该股上周下跌1.33亿澳元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ERA.AU":1,"XAO.AU":1,"XJO.AU":1,"XKO.AU":1},"content_text":"As every investor would know, not every swing hits the sweet spot. But really bad investments should be rare. So consider, for a moment, the misfortune of Energy Resources of Australia Ltd (ASX:ERA) investors who have held the stock for three years as it declined a whopping 99%. That would certainly shake our confidence in the decision to own the stock. And the ride hasn't got any smoother in recent times over the last year, with the price 88% lower in that time. Shareholders have had an even rougher run lately, with the share price down 89% in the last 90 days. While a drop like that is definitely a body blow, money isn't as important as health and happiness. \n Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn. \n Check out our latest analysis for Energy Resources of Australia \n Because Energy Resources of Australia made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. \n Over the last three years, Energy Resources of Australia's revenue dropped 65% per year. That's definitely a weaker result than most pre-profit companies report. The swift share price decline at an annual compound rate of 26%, reflects this weak fundamental performance. We prefer leave it to clowns to try to catch falling knives, like this stock. There is a good reason that investors often describe buying a sharply falling stock price as 'trying to catch a falling knife'. Think about it. \n You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). \n\n\n\n  ASX:ERA Earnings and Revenue Growth October 21st 2024\n \n\n This free interactive report on Energy Resources of Australia's balance sheet strength is a great place to start, if you want to investigate the stock further. \nWhat About The Total Shareholder Return (TSR)?\n Investors should note that there's a difference between Energy Resources of Australia's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Energy Resources of Australia hasn't been paying dividends, but its TSR of -87% exceeds its share price return of -99%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders. \nA Different Perspective\n Investors in Energy Resources of Australia had a tough year, with a total loss of 56%, against a market gain of about 25%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 11% per year over five years. We realise that Baron Rothschild has said investors should \"buy when there is blood on the streets\", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Energy Resources of Australia has   4 warning signs  (and 3 which are concerning)  we think you should know about. \n We will like Energy Resources of Australia better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. \nPlease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477819964"}