10.5 -0.43 (-4.11%) Sell

ADLABS is a falling knife, continues to bleed every investor trying to catch it

13 min read

ADLABS delivered massive losses today. On a longer term basis, investors in ADLABS ENTERTAINMENT LTD. made -0.53% per day. Friday's performance of -4.11% was a underperformance compared to it's daily average.

[Themes containing ADLABS]

Buy-and-Hold investors in ADLABS experienced a maximum drawdown of -38.94% over the last three months. It fell by -9.48% during this bearish trending period. There were no long signals during this period, where the short signal generated good profits of +9.48% for investors.


ADLABS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 3 Nov, 2017 to 4 Dec, 2018. Over the last 1 year 6 months and 11 days, ADLABS underperformed the NIFTY-50 index on 60% days.

ADLABS returned losses on 62% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's best daily return of +5.0%, during this period, on Monday, 5 Nov, 2018. The longest stort-term trend during this period was 16 losing days, which started on 13 Nov, 2018 and ended on 5 Dec, 2018. This bearish trend lost -48.35% of investor capital.

During the last year ADLABS had 4 profitable months and 8 loss making months. ADLABS returned profits in fewer months than NIFTY-50 index. ADLABS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -53.41% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ADLABS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -94.07%. It is interesting to note that both ADLABS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Wealth consists not in having great possessions, but in having few wants.

ADLABS is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ADLABS's volatility from 22 Oct, 2018 to 17 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ADLABS has significant negative skewness in it's return distribution. This indicates that ADLABS is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than ADLABS. Therefore, NIFTY-50 must receive a lower allocation than ADLABS in your portfolio. NIFTY-50 index usually has shorter drawdown period than ADLABS.

Based on your interest in ADLABS you may find it interesting to know that IGARASHI is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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