COGENT COMMUNICATIONS HOLDINGS, INC.

45.38 -1.34 (-2.95%) Sell

Doubt in the minds of CCOI investors as it was among the worst performers

13 min read

COGENT COMMUNICATIONS HOLDINGS, INC. was among the worst performers on Monday. It fell by -2.95% to close at 45.38. On a day when the overall market breadth was 34%, it closed higher than 10% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing CCOI]

CCOI is currently in a bearish trend. The current bearish signal has generated a profit of +13.74% for investors in the last three months.

Trend

CCOI has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 31 Oct, 2017 to 29 Jan, 2018. Over the last 2 years 11 months and 10 days, CCOI outperformed the SP500 index on 54% days.

CCOI returned losses on 59% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -5.03%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -13.81% of investor capital.

During the last year CCOI had 7 profitable months and 5 loss making months. CCOI returned profits in fewer months than SP500 index. CCOI significantly outperformed SP500 index in Apr 2018, when it returned +10.42% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CCOI had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
-- William A. Ward

CCOI 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 CCOI's volatility from 1 Oct, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CCOI has significant positive skewness in it's return distribution. This indicates that investors can expect CCOI to recover from drawdowns quickly. Which makes CCOI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CCOI), two instruments that deserve special mention are NSPR and AYTU. They have significantly outperformed the overall market.

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