27.1 -0.49 (-1.81%) Buy

COLD investors herd to book profits while the going is good

13 min read

AMERICOLD REALTY TRUST is a falling knife that can bleed you if you catch it on Friday. It returned -1.81% to close at 27.1. On a day when the overall market breadth was 35%, it closed higher than 2% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing COLD]

Buy-and-Hold investors in COLD experienced a maximum drawdown of -6.07% over the last three months. It returned +5.49% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +5.63%.


COLD has been outperforming the SP500 index in recent time. Over the last 11 months, COLD outperformed the SP500 index on 55% days.

During the last three months COLD delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.86%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -2.37%) was on Monday, 26 Nov, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 27 Sep, 2018. The trend delivered -2.14% losses to investors. This was followed by a bullish trend that started on 3 Dec, 2018 and ended on 7 Dec, 2018. This bullish trend delivered +3.92% to investors.

On monthly basis, COLD delivered profits in more months over the last year, than losses. COLD delivered profits less regularly than SP500 index. COLD significantly outperformed SP500 index in Aug 2018, when it returned +15.76% compared to +3.29% returned by SP500 index during it's best month in the last one year - Jul 2018. COLD had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

"All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.

COLD 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 fall in COLD's volatility from 17 Sep, 2018 to 1 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 COLD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

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

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