HERCULES HOI. LTD. has destroyed investor wealth on Wednesday. It fell by -1.46% to close at 111.6. On a day when the overall market breadth was 70%, it closed higher than 39% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.
HERCULES is currently in a bullish trend. Over the last three months 3 bullish signals in HERCULES have generated a profit of +0.21% for investors.
HERCULES has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 1 Oct, 2018. Over the last 3 years and 1 month, HERCULES underperformed the NIFTY-50 index on 56% days.
HERCULES returned losses on 59% days in the last three months. During this time, it delivered on average +0.33% per day. It delivered it's best daily return of +17.52%, during this period, on Wednesday, 9 Jan, 2019. The longest stort-term trend during this period was 6 losing days, which started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -4.15% of investor capital.
During the last year HERCULES had 5 profitable months and 7 loss making months. HERCULES returned profits in more months than NIFTY-50 index. HERCULES significantly outperformed NIFTY-50 index in Apr 2018, when it returned +22.09% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HERCULES had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +19.97%. It is interesting to note that both HERCULES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The way to become rich is to put all your eggs in one basket and then watch that basket.
HERCULES 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 surge in HERCULES's volatility from 30 Oct, 2018 to 9 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 HERCULES has significant negative skewness in it's return distribution. This indicates that HERCULES is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than HERCULES. Therefore, NIFTY-50 must receive a lower allocation than HERCULES in your portfolio. NIFTY-50 index usually has shorter drawdown period than HERCULES.
Based on your interest in HERCULES you may find it interesting to know that POKARNA, TATASTEEL and INDIACEM have all performed similar to HERCULES and qualify as alternative investment candidates that must be evaluated for diversification.
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