CELESTICA INC (FOREIGN)

8.92 -0.18 (-1.98%) Sell

CLS investors dump it for better alternatives

13 min read

CELESTICA INC (Foreign) is a falling knife that can bleed you if you catch it on Monday. It lost -1.98% to close at 8.92 which is it's 52 week low, down -28% from it's 52 week high.

[Themes containing CLS]

CLS is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +20.49% for investors.

Trend

CLS has been underperforming the SP500 index in recent time, after having outperformed till 10 Apr, 2017. Over the last 2 years 11 months and 10 days, CLS underperformed the SP500 index on 51% days.

CLS returned losses on 61% days in the last three months. During this time, it delivered on average -0.39% per day. It delivered it's worst daily return of -11.03%, during this period, on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 27 Sep, 2018 and went on till 9 Oct, 2018. The trend delivered -9.19% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +10.47% to investors.

CLS had 4 profitable and 8 loss making months over the last year. During the last year, CLS underperformed SP500 index on monthly return basis. CLS significantly outperformed SP500 index in Apr 2018, when it returned +13.86% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CLS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -28.36%.

Glamour is what I sell, it's my stock in trade.
-- Marlene Dietrich

CLS is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CLS's volatility from 2 Oct, 2018 to 25 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 CLS has significant positive skewness in it's return distribution. This indicates that investors can expect CLS to recover from drawdowns quickly. Which makes CLS 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 CLS. Therefore, SP500 must receive a lower allocation than CLS in your portfolio. CLS usually has shorter drawdown period than the SP500 index.

Based on your interest in CLS you may find it interesting to know that ZBRA is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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