MMTC LIMITED underperformed broader market on Friday. It fell by -0.87% to close at 28.6. It is currently trading -37% below it's 52 week high of 45.6.
Buy-and-Hold investors in MMTC experienced a maximum drawdown of -16.67% over the last three months. It delivered +1.24% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals. The net profit from Long signals was +1.3%.
MMTC has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 7 Nov, 2017 to 1 Oct, 2018. Over the last 3 years and 1 month, MMTC underperformed the NIFTY-50 index on 59% days.
During the last three months MMTC delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.77%) was on Monday, 17 Dec, 2018. While it's worst loss in the same period (of -3.36%) was on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +10.81% to investors.
During the last year MMTC had 6 profitable months and 6 loss making months. MMTC returned profits in more months than NIFTY-50 index. MMTC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -19.03% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MMTC had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +15.14%. It is interesting to note that both MMTC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
When I graduated, I promptly took a job in finance, making both my pre-med and poli-sci years essentially useless - or so I thought.
-- Yael Cohen
MMTC 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 MMTC's volatility from 23 Oct, 2018 to 18 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 MMTC has significant negative skewness in it's return distribution. This indicates that MMTC is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than MMTC. Therefore, NIFTY-50 must receive a lower allocation than MMTC in your portfolio. NIFTY-50 index usually has shorter drawdown period than MMTC.
Based on your interest in MMTC you may find it interesting to know that CUB, HATSUN and BATAINDIA are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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