18.95 -0.02 (-0.11%) Sell

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

13 min read

CHATHAM LODGING TRUST significantly underperformed today. It lost -0.11% to close at 18.95. It's recent 5 day performance has been -0.26%, -1.96%, -0.72%, -2.25% and +3.79%.

[Themes containing CLDT]

CLDT showed a down trend over the last 3 months. During this period CLDT lost -9.72% and saw a maximum drawdown of -9.72%. There were 2 short signals during this period that returned a cumulative of +6.33% to investors.


CLDT has been underperforming the SP500 index in recent time, after having outperformed till 25 Jul, 2016. Over the last 2 years 11 months and 9 days, CLDT underperformed the SP500 index on 48% days. Which indicates that on days CLDT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CLDT returned losses on 62% days in the last three months. During this time, it delivered on average -0.15% per day. It delivered it's worst daily return of -4.13%, during this period, on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 1 Oct, 2018 and went on till 5 Oct, 2018. The trend delivered -5.07% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +4.29% to investors.

CLDT had 6 profitable and 6 loss making months over the last year. During the last year, CLDT underperformed SP500 index on monthly return basis. CLDT was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -18.79% compared to -7.28% returned by SP500 index in Oct 2018. CLDT had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

No wealth can ever make a bad man at peace with himself.
-- Plato

CLDT 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 CLDT's volatility from 18 Sep, 2018 to 12 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 CLDT has significant positive skewness in it's return distribution. This indicates that investors can expect CLDT to recover from drawdowns quickly. Which makes CLDT 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 CLDT. Therefore, SP500 must receive a lower allocation than CLDT in your portfolio. SP500 index usually has shorter drawdown period than CLDT.

Based on your interest in CLDT you may find it interesting to know that SQ, ABMD and AMD are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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