CASTEX TECHNOLOGIES LTD.

1.1 -0.05 (-4.35%) Sell

CASTEXTECH investors dump it for better alternatives

13 min read

CASTEX TECHNOLOGIES LTD. was among the worst performers on Friday. It lost -4.35% to close at 1.1 which is it's 52 week low, down -85% from it's 52 week high.

[Themes containing CASTEXTECH]

Buy-and-Hold investors in CASTEXTECH experienced a maximum drawdown of -26.67% over the last three months. It lost -8.33% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

CASTEXTECH has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2016. Over the last 3 years and 1 month, CASTEXTECH underperformed the NIFTY-50 index on 58% days.

During the last three months CASTEXTECH was mostly loss making and delivered on average -0.08% per day. It's best return during this period (of +4.55%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.35%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 14 Nov, 2018. The bullish trend returned +31.64% to investors. This was followed by a bearish trend that started on 15 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -17.9% of investor capital.

CASTEXTECH had 2 profitable and 10 loss making months over the last year. During the last year, CASTEXTECH underperformed NIFTY-50 index on monthly return basis. CASTEXTECH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -36.07% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CASTEXTECH had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -81.32%.

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more.
-- Charles Caleb Colton

CASTEXTECH 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 fall in CASTEXTECH's volatility from 29 Oct, 2018 to 19 Nov, 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 CASTEXTECH has significant negative skewness in it's return distribution. This indicates that CASTEXTECH is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in CASTEXTECH), two large cap instruments that deserve special mention are INFY and BRITANNIA. They have significantly outperformed the overall market.

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