JBFIND was among the worst performers today. On a longer term basis, investors in JBF INDUSTRIES LTD made -0.1% per day. Friday's performance of -3.32% was a underperformance compared to it's daily average.
JBFIND showed a strong bearish trend over the last 3 months. During this period JBFIND delivered -12.26% and saw a maximum drawdown of -21.51%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in JBFIND till volatility reduces and a clear trend emerges.
JBFIND has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 22 Jun, 2017 to 3 Aug, 2018. Over the last 3 years and 1 month, JBFIND underperformed the NIFTY-50 index on 57% days.
JBFIND returned losses on 59% days in the last three months. During this time, it delivered on average -0.15% per day. It delivered it's worst daily return of -4.98%, during this period, on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 2 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +29.77% to investors.
The last 12 months saw JBFIND's investors making profits in 4 months and incurring losses in 8 months. JBFIND was less consistent in delivering monthly returs than NIFTY-50 index. JBFIND significantly outperformed NIFTY-50 index in Aug 2018, when it returned +54.94% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JBFIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -95.76%.
When buying shares, ask yourself, would you buy the whole company?
-- Rene Rivkin
JBFIND is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in JBFIND's volatility from 19 Oct, 2018 to 15 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 JBFIND has significant negative skewness in it's return distribution. This indicates that JBFIND is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than JBFIND. Therefore, NIFTY-50 must receive a lower allocation than JBFIND in your portfolio. NIFTY-50 index usually has shorter drawdown period than JBFIND.
Based on your interest in JBFIND you may find it interesting to know that HATSUN, CUB and BATAINDIA are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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