CROWN CASTLE INTERNATIONAL CORP

110.91 -3.52 (-3.18%) Buy

Waiting to invest in CCI? Look for alternatives because it delivered lacklustre performance

13 min read

CCI is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in CROWN CASTLE INTERNATIONAL CORP made -0.02% per day. Monday's performance of -3.18% was a underperformance compared to it's daily average.

[Themes containing CCI]

CCI showed a bearish trend over the last 3 months. During this period CCI delivered -1.12% and saw a maximum drawdown of -7.88%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in CCI till volatility reduces and a clear trend emerges.

Trend

CCI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jul, 2016 to 14 Jun, 2018. Over the last 2 years 11 months and 10 days, CCI outperformed the SP500 index on 53% days.

During the last three months CCI delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.27%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.55%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 1 Nov, 2018 and went on till 7 Nov, 2018. This bullish trend returned +2.73% to investors.

The last 12 months saw CCI's investors making profits in 6 months and incurring losses in 6 months. CCI was less consistent in delivering monthly returs than SP500 index. CCI was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -7.29% compared to -7.28% returned by SP500 index in Oct 2018. CCI had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"A bull market is very much like being in love. You don't realise its value till It's gone.

CCI 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 CCI's volatility from 18 Sep, 2018 to 30 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 CCI has significant positive skewness in it's return distribution. This indicates that investors can expect CCI to recover from drawdowns quickly. Which makes CCI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CCI), PFE is a large cap that deserves to be closely tracked for investment opportunities.

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