93.11 -0.77 (-0.83%) Buy

BMRN investors re-evaluating their investment strategy

13 min read

BIOMARIN PHARMACEUTICAL INC has destroyed investor wealth on Friday. It delivered -0.83% to close at 93.11. It is currently trading +22% above it's 52 week low of 76.01 and is down only -12% from it's 52 week high.

[Themes containing BMRN]

Buy-and-Hold investors in BMRN experienced a maximum drawdown of -13.76% over the last three months. It delivered -5.13% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


BMRN has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2016 to 1 Mar, 2018. Over the last 2 years 11 months and 10 days, BMRN underperformed the SP500 index on 51% days.

During the last three months BMRN was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +6.6%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -7.34%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 17 Sep, 2018 and went on till 20 Sep, 2018. This bullish trend returned +2.28% to investors.

The last 12 months saw BMRN's investors making profits in 5 months and incurring losses in 7 months. BMRN was less consistent in delivering monthly returs than SP500 index. BMRN was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.04% compared to -7.28% returned by SP500 index in Oct 2018. BMRN had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both BMRN and SP500 index significantly outperform during months when quarterly/annual results are announced.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

BMRN is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BMRN's volatility from 20 Sep, 2018 to 29 Oct, 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 BMRN 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.

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

Based on your interest in BMRN you may find it interesting to know that AMD is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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