55.13 -0.89 (-1.61%) Sell

Doubt in the minds of CUB investors as it delivered massive losses

13 min read

CUBIC CORP has destroyed investor wealth on Friday. It fell by -1.61% to close at 55.13. On a day when the overall market breadth was 35%, it closed higher than 13% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing CUB]

CUB is currently in a bearish trend. The current bearish signal has generated a profit of +22.24% for investors in the last three months.


CUB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Aug, 2017 to 28 Aug, 2018. Over the last 2 years 11 months and 3 days, CUB underperformed the SP500 index on 46% days. Which indicates that on days CUB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CUB returned losses on 66% days in the last three months. During this time, it delivered on average -0.46% per day. It delivered it's worst daily return of -11.8%, during this period, on Tuesday, 27 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -6.59% of investor capital.

During the last year CUB had 5 profitable months and 7 loss making months. CUB returned profits in fewer months than SP500 index. CUB significantly outperformed SP500 index in May 2018, when it returned +12.63% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CUB 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 -29.38%.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

CUB 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 CUB's volatility from 12 Sep, 2018 to 4 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in CUB you may find it interesting to know that NVCN is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to NVCN or sufficiently diversifying your portfolio.

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