CARS.COM INC. delivered massive losses today. It lost -2.03% to close at 23.15. It's recent 5 day performance has been -0.08%, -6.56%, +6.12%, -0.33% and -1.4%.
CARS showed a strong down trend over the last 3 months. During this period CARS lost -10.72% and saw a maximum drawdown of -16.15%. There were 3 short signals during this period that returned a cumulative of +3.76% to investors.
CARS has been underperforming the SP500 index in recent time, after having outperformed till 6 Jun, 2017. Over the last 1 year 6 months and 13 days, CARS underperformed the SP500 index on 50% days. Which indicates that on days CARS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
CARS returned losses on 56% days in the last three months. During this time, it delivered on average -0.16% per day. It delivered it's worst daily return of -6.56%, during this period, on Thursday, 13 Dec, 2018. There was initially a bullish trend during this period which started on 20 Sep, 2018 and went on till 25 Sep, 2018. The bullish trend returned +6.76% to investors. This was followed by a bearish trend that started on 8 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.29% of investor capital.
CARS had 5 profitable and 7 loss making months over the last year. During the last year, CARS underperformed SP500 index on monthly return basis. CARS significantly outperformed SP500 index in Jun 2018, when it returned +10.55% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CARS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -13.13%. It is interesting to note that both CARS and SP500 index significantly outperform during months when quarterly/annual results are announced.
Invest like a bull, sit like a bear and watch like an eagle. (mantra for long term investing)
-- Vijay Kedia
CARS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CARS's volatility from 20 Sep, 2018 to 13 Dec, 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 CARS has significant positive skewness in it's return distribution. This indicates that investors can expect CARS to recover from drawdowns quickly. Which makes CARS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in CARS you may find it interesting to know that AMRH has shown remarkable performance and deserves to be on every investors' watchlist.
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