K3 Business Technology Group plc (LON:KBT) shareholders will doubtless be very grateful to see the share price up 39% in the last week. But don’t envy holders — looking back over 5 years the returns have been really bad. In fact, the share price has declined rather badly, down some 66% in that time. So we’re hesitant to put much weight behind the short term increase. We’d err towards caution given the long term under-performance.
K3 Business Technology Group wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit