3.4 +0.1 (+3.03%) Sell

JMTAUTOLTD does a dead cat bounce, it's still too early to buy into it

13 min read

JMTAUTOLTD outperformed today. On a longer term basis, investors in JMT AUTO LIMITED made -0.16% per day. Tuesday's performance of +3.03% was a outperformance compared to it's daily average.

[Themes containing JMTAUTOLTD]

Buy-and-Hold investors in JMTAUTOLTD experienced a maximum drawdown of -21.92% over the last three months. It surged by +36.0% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +26.74%.


JMTAUTOLTD has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 11 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, JMTAUTOLTD underperformed the NIFTY-50 index on 57% days.

JMTAUTOLTD returned losses on 54% days in the last three months. During this time, it delivered on average +0.54% per day. It delivered it's best daily return of +10.0%, during this period, on Tuesday, 18 Dec, 2018. The longest stort-term trend during this period was 11 profitable days, which started on 30 Oct, 2018 and went on till 14 Nov, 2018. This bullish trend returned +38.58% to investors.

During the last year JMTAUTOLTD had 4 profitable months and 8 loss making months. JMTAUTOLTD returned profits in fewer months than NIFTY-50 index. JMTAUTOLTD significantly outperformed NIFTY-50 index in Dec 2018, when it returned +22.95% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JMTAUTOLTD had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -39.28%. It is interesting to note that both JMTAUTOLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The stock market is a discounter of all known information.
-- Kenneth Fisher

JMTAUTOLTD 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 surge in JMTAUTOLTD's volatility from 14 Nov, 2018 to 7 Dec, 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 JMTAUTOLTD has significant negative skewness in it's return distribution. This indicates that JMTAUTOLTD is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in JMTAUTOLTD), two instruments that deserve special mention are VINATIORGA and CUB. They have significantly outperformed the overall market this year.

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