51.7 -2.79 (-5.4%) Sell

BYKE investors dump it

13 min read

THE BYKE HOSPITALITY LTD was among the worst performers on Wednesday. It fell by -5.4% to close at 51.7. On a day when the overall market breadth was 70%, it closed higher than 14% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing BYKE]

BYKE is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +27.58% for investors.


BYKE has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 28 Apr, 2017 to 23 Jan, 2019. One must note that BYKE is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, BYKE underperformed the NIFTY-50 index on 56% days.

During the last three months BYKE was mostly loss making and delivered on average -0.64% per day. It's best return during this period (of +4.54%) was on Tuesday, 1 Jan, 2019. While it's worst loss in the same period (of -5.4%) was on Wednesday, 23 Jan, 2019. The longest stort-term trend during this period was 7 losing days, which started on 2 Jan, 2019 and ended on 10 Jan, 2019. This bearish trend lost -15.91% of investor capital.

During the last year BYKE had 1 profitable months and 11 loss making months. BYKE returned profits in fewer months than NIFTY-50 index. BYKE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -24.7% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BYKE had a longer winning streak of losing months than NIFTY-50 index. It went down in 9 straight months (from May 2018 to Jan 2019) during which period it delivered -126.7%.

Investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper.
-- Warren Edward Buffett

BYKE is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in BYKE's volatility from 24 Oct, 2018 to 20 Dec, 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 BYKE has significant negative skewness in it's return distribution. This indicates that BYKE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in BYKE you may find it interesting to know that SRIPIPES and NIFTY50-DIV-POINT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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