COPART INC significantly underperformed on Friday. It delivered -2.71% to close at 48.04. On a day when the overall market breadth was 35%, it closed higher than 5% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
CPRT showed a strong bearish trend over the last 3 months. During this period CPRT delivered -24.62% and saw a maximum drawdown of -27.8%. There was a short signal during this period which returned +13.57%.
CPRT has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 29 Jan, 2016 to 11 Sep, 2018. Over the last 2 years 11 months and 10 days, CPRT outperformed the SP500 index on 56% days.
During the last three months CPRT was mostly loss making and delivered on average -0.4% per day. It's best return during this period (of +5.9%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -13.39%) was on Wednesday, 19 Sep, 2018. The longest stort-term trend during this period was 6 losing days, which started on 29 Nov, 2018 and ended on 7 Dec, 2018. This bearish trend lost -8.9% of investor capital.
The last 12 months saw CPRT's investors making profits in 9 months and incurring losses in 3 months. During the last year, CPRT delivered profits in more months than SP500 index. CPRT was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -19.87% compared to -7.28% returned by SP500 index in Oct 2018. CPRT had a longer winning streak of profitable months than SP500 index. It went up in 8 straight months (from Jan 2018 to Aug 2018) during which period it delivered +42.21%.
How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen
CPRT 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 CPRT's volatility from 18 Sep, 2018 to 19 Sep, 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 CPRT has significant positive skewness in it's return distribution. This indicates that investors can expect CPRT to recover from drawdowns quickly. Which makes CPRT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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