NEU 6.09% $19.04 neuren pharmaceuticals limited

Hi @Edmorgrimm Thanks for the question. Simply choosing the...

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    Hi @Edmorgrimm

    Thanks for the question.

    Simply choosing the option to display price on a log scale rather than on the normal linear scale allows the full price history to be viewed on a chart.

    A constant rate of compound (exponential) growth then will appear as a straight line, with the gradient of the line determined by the rate of growth. The higher the growth rate the higher will be the slope of the line.

    I find that plotting long-term prices in this way facilitates recognition of the existence of a constant growth rate, and when used for stock selection it makes it easier to choose companies displaying higher price growth.

    In fact, a straight trendline fitted on a linear scale plot would indicate that the rate of price growth is continually reducing over time.

    If you search my posts on other HC threads, you will find charts of some other companies with similar high-growth characteristics.

    Cheers
 
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