SMSPHARMA investors herd to book profits while the going is good
18 Jan, 201913 min read
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SMS PHARMACEUTICALS LTD. ranked among the worst performers today. It fell by -3.78% to close at 76.35. It's recent 5 day performance has been +5.17%, +1.89%, +1.72%, +0.69% and +2.41%.
SMSPHARMA is currently in a bullish trend. Over the last three months 2 bullish signals in SMSPHARMA have generated a profit of +15.24% for investors.
SMSPHARMA has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, SMSPHARMA underperformed the NIFTY-50 index on 55% days.
During the last three months SMSPHARMA was mostly profitable and delivered on average +0.26% per day. It's best return during this period (of +6.21%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -3.8%) was on Friday, 4 Jan, 2019. The longest stort-term trend during this period was 5 profitable days, which started on 11 Jan, 2019 and went on till 17 Jan, 2019. This bullish trend returned +11.88% to investors.
During the last year SMSPHARMA had 8 profitable months and 4 loss making months. SMSPHARMA returned profits in more months than NIFTY-50 index. SMSPHARMA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -16.26% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SMSPHARMA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +18.83%. It is interesting to note that both SMSPHARMA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Greed is not a financial issue. It's a heart issue.
-- Andy Stanley
SMSPHARMA 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 surge in SMSPHARMA's volatility from 29 Nov, 2018 to 4 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 SMSPHARMA has significant negative skewness in it's return distribution. This indicates that SMSPHARMA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SMSPHARMA. Therefore, NIFTY-50 must receive a lower allocation than SMSPHARMA in your portfolio. NIFTY-50 index usually has shorter drawdown period than SMSPHARMA.
Based on your interest in SMSPHARMA you may find it interesting to know that LTI, CUB and NIITTECH have all shown remarkable performance this year and deserve to be on every investor's watchlist.
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