MAN INDUSTRIES (I) LTD.

64.7 -2.5 (-3.86%) Sell

Are you evaluating investing in MANINDS? Avoid as it is a falling knife that can bleed you if you catch it

13 min read

MAN INDUSTRIES (I) LTD. is a falling knife that can bleed you if you catch it on Tuesday. It lost -3.86% to close at 64.7. On a day when the overall market breadth was 70%, it closed higher than 50% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing MANINDS]

MANINDS showed a strong down trend over the last 3 months. During this period MANINDS lost -18.0% and saw a maximum drawdown of -20.76%. There was a short signal during this period which returned +18.0%.

Trend

MANINDS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jan, 2018. Over the last 3 years and 1 month, MANINDS underperformed the NIFTY-50 index on 55% days.

MANINDS returned losses on 61% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's best daily return of +4.62%, during this period, on Tuesday, 18 Dec, 2018. There was initially a bullish trend during this period which started on 25 Oct, 2018 and went on till 29 Oct, 2018. The bullish trend returned +7.08% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -8.5% of investor capital.

MANINDS had 4 profitable and 8 loss making months over the last year. During the last year, MANINDS underperformed NIFTY-50 index on monthly return basis. MANINDS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -27.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MANINDS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered -20.59%. It is interesting to note that both MANINDS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The art and culture that is New York, communications, finance, all these things help make up New York. The rest of the country should be happy that we are what we are.
-- David Dinkins

MANINDS 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 MANINDS's volatility from 23 Oct, 2018 to 9 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 MANINDS has significant negative skewness in it's return distribution. This indicates that MANINDS is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MANINDS you may find it interesting to know that NIFTY50-DIV-POINT, IEX and TIDEWATER are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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