Doubt in the minds of BLDR investors as it was among the worst performers
11 Dec, 201813 min read
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BUILDERS FIRSTSOURCE, INC. was among the worst performers today. It fell by -1.38% to close at 11.41. It's recent 5 day performance has been -3.9%, -3.64%, +2.04%, -14.25% and +5.54%.
BLDR is currently in a bearish trend. The current bearish signal has generated a profit of +33.31% for investors in the last three months.
BLDR has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Feb, 2016 to 5 Jan, 2018. Over the last 2 years 11 months and 7 days, BLDR underperformed the SP500 index on 49% days. Which indicates that on days BLDR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months BLDR was mostly loss making and delivered on average -0.58% per day. It's best return during this period (of +11.47%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -14.25%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 12 losing days, which started on 17 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -15.57% of investor capital.
During the last year BLDR had 3 profitable months and 9 loss making months. BLDR returned profits in fewer months than SP500 index. BLDR was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -15.67% compared to -7.28% returned by SP500 index in Oct 2018. BLDR had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -39.93%. It is interesting to note that both BLDR and SP500 index significantly outperform during months when quarterly/annual results are announced.
"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.
BLDR is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BLDR's volatility from 28 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that BLDR 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 BLDR. Therefore, SP500 must receive a lower allocation than BLDR in your portfolio. SP500 index usually has shorter drawdown period than BLDR.
On a general note (since you are interested in BLDR), two instruments that deserve special mention are DLPH and APRN. They have significantly outperformed the overall market.
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