41.05 -0.93 (-2.26%) Buy

AUSOMENT investors herd to book profits while the going is good

14 min read

AUSOM ENTERPRISE LIMITED was among the worst performers on Friday. It lost -2.26% to close at 41.05. On a day when the overall market breadth was 71%, it closed higher than 93% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing AUSOMENT]

AUSOMENT is currently in a up trend. Over the last three months trading long signals has not been a profitable strategy for AUSOMENT's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -21.88%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to AUSOMENT.


AUSOMENT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 23 Apr, 2018. Over the last 3 years and 1 month, AUSOMENT outperformed the NIFTY-50 index on 45% days. Which indicates that on days AUSOMENT outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months AUSOMENT was mostly loss making and delivered on average -0.3% per day. It's best return during this period (of +20.0%) was on Friday, 4 Jan, 2019. While it's worst loss in the same period (of -9.96%) was on Monday, 7 Jan, 2019. There was initially a bullish trend during this period which started on 6 Nov, 2018 and went on till 9 Nov, 2018. The bullish trend returned +7.91% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -13.8% of investor capital.

AUSOMENT had 4 profitable and 8 loss making months over the last year. During the last year, AUSOMENT underperformed NIFTY-50 index on monthly return basis. AUSOMENT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -19.64% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AUSOMENT had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -36.86%. It is interesting to note that both AUSOMENT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-- David Brinkley

AUSOMENT is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant surge in AUSOMENT's volatility from 22 Oct, 2018 to 23 Oct, 2018. 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 AUSOMENT has significant negative skewness in it's return distribution. This indicates that AUSOMENT is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in AUSOMENT), SPLIL has performed really well this year and deserves to be closely tracked for investment opportunities.

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