COMPUSOFT shows sign of weakness as investors do cost averaging
22 Jan, 201913 min read
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COMPUCOM SOFTWARE LTD performed better than the broader market today. It lost 0.0% to close at 10.7. During the last week it lost -2.73% and saw a maximum drawdown of -2.73%.
COMPUSOFT is currently in a down trend. The current bearish signal has generated a profit of +0.93% for investors in the last three months.
COMPUSOFT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 30 Oct, 2016. Over the last 3 years and 1 month, COMPUSOFT underperformed the NIFTY-50 index on 53% days.
During the last three months COMPUSOFT was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +7.76%) was on Tuesday, 4 Dec, 2018. While it's worst loss in the same period (of -6.58%) was on Friday, 16 Nov, 2018. There was initially a bullish trend during this period which started on 6 Nov, 2018 and went on till 12 Nov, 2018. The bullish trend returned +11.36% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 7 Dec, 2018. This bearish trend lost -6.47% of investor capital.
COMPUSOFT had 5 profitable and 7 loss making months over the last year. During the last year, COMPUSOFT underperformed NIFTY-50 index on monthly return basis. COMPUSOFT significantly outperformed NIFTY-50 index in Apr 2018, when it returned +24.66% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. COMPUSOFT and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both COMPUSOFT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens
COMPUSOFT is becoming less 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 COMPUSOFT's volatility from 14 Nov, 2018 to 22 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 COMPUSOFT has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
NIFTY-50 index has more chance of extreme outcomes than COMPUSOFT. Therefore, NIFTY-50 must receive a lower allocation than COMPUSOFT in your portfolio. NIFTY-50 index usually has shorter drawdown period than COMPUSOFT.
Based on your interest in COMPUSOFT you may find it interesting to know that LTI, LTTS and HATSUN are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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