LIBERTY SHOES LTD

168.05 -3.19 (-1.9%) Buy

Search for alternative investments is on for LIBERTSHOE investors as it shows weakness

13 min read

LIBERTY SHOES LTD delivered massive losses on Friday. It delivered -1.9% to close at 168.05. It is currently trading -36% below it's 52 week high of 264.6.

[Themes containing LIBERTSHOE]

Buy-and-Hold investors in LIBERTSHOE experienced a maximum drawdown of -16.09% over the last three months. It increased by +16.18% 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 +5.42%.

Trend

LIBERTSHOE has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 18 Sep, 2017 to 8 Oct, 2018. Over the last 3 years and 1 month, LIBERTSHOE underperformed the NIFTY-50 index on 58% days.

During the last three months LIBERTSHOE delivered losses on 52% days. However, it still managed to end this period in a profit. It's best return during this period (of +15.09%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -4.82%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 26 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +22.32% to investors.

The last 12 months saw LIBERTSHOE's investors making profits in 6 months and incurring losses in 6 months. During the last year, LIBERTSHOE delivered profits in more months than NIFTY-50 index. LIBERTSHOE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -18.76% compared to -6.42% returned by NIFTY-50 index in Sep 2018. LIBERTSHOE had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +13.38%. It is interesting to note that both LIBERTSHOE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Well, I think that there's a very thin dividing line between success and failure. And I think if you start a business without financial backing, you're likely to go the wrong side of that dividing line.

LIBERTSHOE 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 LIBERTSHOE's volatility from 2 Nov, 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 LIBERTSHOE has significant negative skewness in it's return distribution. This indicates that LIBERTSHOE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in LIBERTSHOE you may find it interesting to know that HATSUN is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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