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https://simplywall.st/stocks/ca/pharmaceuticals-biotech/cse-holl/hollister-biosciences-shares/news/is-hollister-biosciences-cseholl-268-share-price-increase-we

Is Hollister Biosciences' (CSE:HOLL) 268% Share Price Increase Well Justified?

By Simply Wall St
Published April 12, 2021

CNSX:HOLL


It might be of some concern to shareholders to see the Hollister Biosciences Inc. (CSE:HOLL) share price down 10% in the last month. But that doesn't detract from the splendid returns of the last year. Like an eagle, the share price soared 268% in that time. So it may be that the share price is simply cooling off after a strong rise. More important, going forward, is how the business itself is going.

Because Hollister Biosciences made a loss in the last twelve months, we think the market is probably more focused on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Hollister Biosciences' revenue grew by 2,099%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 268% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

A Different Perspective

Hollister Biosciences shareholders should be happy with the total gain of 268% over the last twelve months. That's better than the more recent three month gain of 9.4%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually).