47.18 -0.09 (-0.19%) Sell

Don't buy BMS now, it is a risky investment

13 min read

BMS was among the worst performers today. On a longer term basis, investors in BEMIS CO INC made +0.03% per day. Tuesday's performance of -0.19% was a significant underperformance compared to it's daily average.

[Themes containing BMS]

BMS showed a down trend over the last 3 months. During this period BMS returned -4.65% and saw a maximum drawdown of -10.81%. There were 2 short signals during this period that returned a cumulative of +6.58% to investors.


BMS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, BMS underperformed the SP500 index on 50% days. Which indicates that on days BMS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

BMS returned losses on 54% days in the last three months. During this time, it delivered on average -0.07% per day. It delivered it's worst daily return of -2.41%, during this period, on Tuesday, 9 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +4.32% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -3.26% of investor capital.

On monthly basis, BMS delivered losses in more months over the last year, than profits. BMS delivered profits less regularly than SP500 index. BMS significantly outperformed SP500 index in Jul 2018, when it returned +8.38% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BMS had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jan 2018 to Jun 2018) during which period it delivered -12.06%.

"A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.

BMS 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 surge in BMS's volatility from 14 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BMS 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 BMS. Therefore, SP500 must receive a lower allocation than BMS in your portfolio. SP500 index usually has shorter drawdown period than BMS.

Based on your interest in BMS you may find it interesting to know that DLPH and APRN have both shown remarkable performance and deserve to be on every investors' watchlist.

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