5500.2 -173.92 (-3.16%) Sell

Don't even consider investing in LAXMIMACH now, it is an investor's nightmare

13 min read

LAXMIMACH was among the worst performers today. On a longer term basis, investors in LAKSHMI MACHINES LTD made +0.07% per day. Friday's performance of -3.16% was a underperformance compared to it's daily average.

[Themes containing LAXMIMACH]

LAXMIMACH showed a bearish trend over the last 3 months. During this period LAXMIMACH delivered -9.33% and saw a maximum drawdown of -10.63%. There was a short signal during this period which returned +9.33%.


LAXMIMACH has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Feb, 2017 to 9 May, 2018. Over the last 3 years and 1 month, LAXMIMACH outperformed the NIFTY-50 index on 44% days. Which indicates that on days LAXMIMACH outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months LAXMIMACH was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +5.62%) was on Tuesday, 13 Nov, 2018. While it's worst loss in the same period (of -5.87%) was on Tuesday, 23 Oct, 2018. 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 -3.99% of investor capital.

The last 12 months saw LAXMIMACH's investors making profits in 4 months and incurring losses in 8 months. LAXMIMACH was less consistent in delivering monthly returs than NIFTY-50 index. LAXMIMACH significantly outperformed NIFTY-50 index in Apr 2018, when it returned +17.05% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LAXMIMACH had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -34.57%.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

LAXMIMACH 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 fall in LAXMIMACH's volatility from 19 Oct, 2018 to 17 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 LAXMIMACH has significant negative skewness in it's return distribution. This indicates that LAXMIMACH is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in LAXMIMACH you may find it interesting to know that SPLIL and CUB have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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