42.43 -1.24 (-2.93%) Sell

Are you evaluating investing in CBM? Avoid as it significantly underperformed

13 min read

CBM significantly underperformed today. On a longer term basis, investors in CAMBREX CORP made -0.08% per day. Thursday's performance of -2.93% was a significant underperformance compared to it's daily average.

[Themes containing CBM]

CBM showed a strong down trend over the last 3 months. During this period CBM lost -32.33% and saw a maximum drawdown of -37.97%. There were 3 short signals during this period that returned a cumulative of +22.82% to investors.


CBM has been underperforming the SP500 index in recent time, after having outperformed till 21 Jul, 2016. Over the last 2 years 11 months and 9 days, CBM underperformed the SP500 index on 51% days.

During the last three months CBM was mostly loss making and delivered on average -0.6% per day. It's best return during this period (of +4.21%) was on Tuesday, 25 Sep, 2018. While it's worst loss in the same period (of -10.06%) was on Thursday, 8 Nov, 2018. There was initially a bullish trend during this period which started on 24 Sep, 2018 and went on till 28 Sep, 2018. The bullish trend returned +11.31% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 13 Dec, 2018. This bearish trend lost -14.72% of investor capital.

CBM had 7 profitable and 5 loss making months over the last year. During the last year, CBM underperformed SP500 index on monthly return basis. CBM significantly outperformed SP500 index in Jul 2018, when it returned +20.08% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CBM 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 CBM and SP500 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

CBM 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 CBM's volatility from 20 Sep, 2018 to 12 Nov, 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 CBM 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 CBM. Therefore, SP500 must receive a lower allocation than CBM in your portfolio. SP500 index usually has shorter drawdown period than CBM.

Based on your interest in CBM you may find it interesting to know that FIVE, BYD and ~FRACKING have all performed similar to CBM and qualify as alternative investment candidates that must be evaluated for diversification.

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