The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Plumas Bancorp (NASDAQ:PLBC) share price is 120% higher than it was three years ago. How nice for those who held the stock! It’s also up 11% in about a month. But the price may well have benefitted from a buoyant market, since stocks have gained 5.7% in the last thirty days.
With that in mind, it’s worth seeing if the company’s underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for Plumas Bancorp
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has…
