FLNG) Shares Have Dropped 45%? – Simply Wall St News

Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in Flex LNG Ltd. (OB:FLNG) have tasted that bitter downside in the last year, as the share price dropped 45%. That falls noticeably short of the market return of around 1.0%. Because Flex LNG hasn’t been listed for many years, the market is still learning about how the business performs. Even worse, it’s down 23% in about a month, which isn’t fun at all.

Check out our latest analysis for Flex LNG

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).

During the last year Flex LNG grew its earnings per share, moving from a loss to a profit.

It’s good to see it turn a profit, but we note it was reasonably close to profitability last year. And judging by the share price, the market is not too happy about it, either. Sentiment seems negative, despite the newfound profitability – so contrarians may want to take a look at the stock.

The image below shows how EPS has tracked over time.

OB:FLNG Past and Future Earnings, November 12th 2019

We consider it positive that insiders have made significant purchases in the las....

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