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The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn’t blame long term Computer Modelling Group Ltd. (TSE:CMG) shareholders for doubting their decision to hold, with the stock down 58% over a half decade. Unhappily, the share price slid 3.0% in the last week.

See our latest analysis for Computer Modelling Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the five years over which the share price declined, Computer Modelling Group’s earnings per share (EPS) dropped by 8.0% each year. This reduction in EPS is

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