59.05 -2.31 (-3.91%) Sell

GULFPETRO investors looking to preserve capital

13 min read

GP PETROLEUMS LIMITED has destroyed investor wealth on Tuesday. It returned -3.91% to close at 59.05 which is it's 52 week low, down -37% from it's 52 week high.

[Themes containing GULFPETRO]

Buy-and-Hold investors in GULFPETRO experienced a maximum drawdown of -19.5% over the last three months. It returned -16.83% during this strong 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. The net profit from Short signals was +4.85%.


GULFPETRO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 20 Apr, 2017. GULFPETRO is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, GULFPETRO underperformed the NIFTY-50 index on 56% days.

During the last three months GULFPETRO was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +4.26%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -3.91%) was on Tuesday, 22 Jan, 2019. There was initially a bullish trend during this period which started on 31 Dec, 2018 and went on till 4 Jan, 2019. The bullish trend returned +1.43% to investors. This was followed by a bearish trend that started on 7 Jan, 2019 and ended on 10 Jan, 2019. This bearish trend lost -4.85% of investor capital.

On monthly basis, GULFPETRO delivered losses in more months over the last year, than profits. GULFPETRO delivered profits less regularly than NIFTY-50 index. GULFPETRO significantly outperformed NIFTY-50 index in Jul 2018, when it returned +30.81% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GULFPETRO 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 -27.71%. It is interesting to note that both GULFPETRO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It is not the man who has too little, but the man who craves more, that is poor.
-- Seneca

GULFPETRO 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 GULFPETRO's volatility from 23 Oct, 2018 to 7 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 GULFPETRO has significant negative skewness in it's return distribution. This indicates that GULFPETRO is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in GULFPETRO you may find it interesting to know that VINATIORGA, ASTRAZEN and NIITTECH are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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