Don't consider buying JBCHEPHARM now, it is risky at the moment
18 Jan, 201913 min read
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J B CHEMICALS AND PHARMA delivered massive losses today. It lost -1.65% to close at 310.45. It's recent 5 day performance has been -1.14%, +1.12%, +4.8%, +0.28% and -0.07%.
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JBCHEPHARM showed a up trend over the last 3 months. During this period JBCHEPHARM grew by +1.95% and saw a maximum drawdown of -7.93%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in JBCHEPHARM till volatility reduces and a clear trend emerges.
JBCHEPHARM has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, JBCHEPHARM underperformed the NIFTY-50 index on 53% days.
During the last three months JBCHEPHARM delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.8%) was on Tuesday, 15 Jan, 2019. While it's worst loss in the same period (of -2.43%) was on Monday, 22 Oct, 2018. There was initially a bearish trend during this period which started on 20 Nov, 2018 and went on till 26 Nov, 2018. The trend delivered -4.28% losses to investors. This was followed by a bullish trend that started on 27 Dec, 2018 and ended on 3 Jan, 2019. This bullish trend delivered +5.55% to investors.
JBCHEPHARM had 7 profitable and 5 loss making months over the last year. JBCHEPHARM was profitable in more months than NIFTY-50 index. JBCHEPHARM significantly outperformed NIFTY-50 index in Aug 2018, when it returned +25.64% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JBCHEPHARM and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both JBCHEPHARM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
It is time for us to stand and cheer for the doer, the achiever, the one who recognizes the challenge and does something about it.
-- Vince Lombardi
JBCHEPHARM 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 JBCHEPHARM's volatility from 19 Oct, 2018 to 26 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 JBCHEPHARM has significant negative skewness in it's return distribution. This indicates that JBCHEPHARM is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than JBCHEPHARM. Therefore, NIFTY-50 must receive a lower allocation than JBCHEPHARM in your portfolio. NIFTY-50 index usually has shorter drawdown period than JBCHEPHARM.
On a general note (since you are interested in JBCHEPHARM), TORNTPHARM is a large cap that deserves to be closely tracked for investment opportunities.
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