MCNALLY BH. ENG. CO.LTD

9.0 -0.15 (-1.64%) Buy

Search for alternative investments is on for MBECL investors as it underperforms broader market

13 min read

MCNALLY BH. ENG. CO.LTD was among the worst performers today. It returned -1.64% to close at 9.0. During the last week it returned -13.04% and saw a maximum drawdown of -13.04%.

[Themes containing MBECL]

MBECL is currently in a up trend. The previous long signal in MBECL has not been profitable for investors in general. If you are invested in MBECL at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

MBECL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 21 Jan, 2016. Over the last 3 years and 1 month, MBECL underperformed the NIFTY-50 index on 56% days.

During the last three months MBECL was mostly loss making and delivered on average -0.76% per day. It's best return during this period (of +4.93%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -4.98%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 9 Nov, 2018. The bullish trend returned +23.94% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 22 Nov, 2018. This bearish trend lost -22.18% of investor capital.

On monthly basis, MBECL delivered losses in more months over the last year, than profits. MBECL delivered profits less regularly than NIFTY-50 index. MBECL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -52.36% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MBECL had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -119.76%. It is interesting to note that both MBECL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Infinite growth of material consumption in a finite world is an impossibility.

MBECL 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 MBECL's volatility from 24 Oct, 2018 to 9 Nov, 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 MBECL has significant negative skewness in it's return distribution. This indicates that MBECL is very risky for short-term investment and can significantly underperform for long durations.

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

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

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