Consun Pharmaceutical Group Limited (HKG:1681) shareholders should be happy to see the share price up 11% in the last month. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 30% in that half decade.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
Looking back five years, both Consun Pharmaceutical Group’s share price and EPS declined; the latter at a rate