316.19 -3.49 (-1.1%) Sell

ABMD is a falling knife, continues to bleed every investor trying to catch it

13 min read

ABMD delivered massive losses today. On a longer term basis, investors in ABIOMED INC made -0.21% per day. Friday's performance of -1.1% was a significant underperformance compared to it's daily average.

[Themes containing ABMD]

ABMD showed a strong down trend over the last 3 months. During this period ABMD returned -14.29% and saw a maximum drawdown of -33.43%. There was a short signal during this period which returned +5.08%.


ABMD has been underperforming the SP500 index in recent time, after having outperformed till 20 Jun, 2018. Over the last 2 years 11 months and 10 days, ABMD outperformed the SP500 index on 55% days.

During the last three months ABMD was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +10.47%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -16.61%) was on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 26 Sep, 2018. The bullish trend returned +19.24% to investors. This was followed by a bearish trend that started on 1 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -19.85% of investor capital.

On monthly basis, ABMD delivered profits in more months over the last year, than losses. ABMD delivered profits less regularly than SP500 index. ABMD significantly outperformed SP500 index in May 2018, when it returned +26.65% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ABMD and SP500 index, both had periods of 6 consecutive profitable months.

Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
-- Robert J. Shiller

ABMD is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in ABMD's volatility from 17 Sep, 2018 to 21 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ABMD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than ABMD. Therefore, SP500 must receive a lower allocation than ABMD in your portfolio. SP500 index usually has shorter drawdown period than ABMD.

On a general note (since you are interested in ABMD), three instruments that deserve special mention are AYTU, NSPR and SBOT. They have all outperformed the market and must be closely watched for investment opportunities.

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