CORE LABORATORIES N V

69.69 -3.25 (-4.66%) Sell

CLB is a falling knife, continues to bleed every investor trying to catch it

13 min read

CLB has destroyed investor wealth today. On a longer term basis, investors in CORE LABORATORIES N V made +0.02% per day. Tuesday's performance of -4.66% was a underperformance compared to it's daily average.

[Themes containing CLB]

CLB showed a strong bearish trend over the last 3 months. During this period CLB delivered -37.06% and saw a maximum drawdown of -42.42%. There were 2 short signals during this period that returned a cumulative of +34.12% to investors.

Trend

CLB has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 29 Apr, 2016 to 11 Dec, 2018. One must note that CLB is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 7 days, CLB underperformed the SP500 index on 50% days. Which indicates that on days CLB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CLB was mostly loss making and delivered on average -0.7% per day. It's best return during this period (of +3.59%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -6.45%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -24.63% of investor capital.

The last 12 months saw CLB's investors making profits in 7 months and incurring losses in 5 months. CLB was less consistent in delivering monthly returs than SP500 index. CLB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -27.18% compared to -7.28% returned by SP500 index in Oct 2018. CLB had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Here's my gift-giving rule: Respect your current financial situation.
-- Suze Orman

CLB is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CLB's volatility from 18 Sep, 2018 to 11 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CLB has significant positive skewness in it's return distribution. This indicates that investors can expect CLB to recover from drawdowns quickly. Which makes CLB 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 CLB. Therefore, SP500 must receive a lower allocation than CLB in your portfolio. SP500 index usually has shorter drawdown period than CLB.

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

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