66.17 -1.07 (-1.62%) Sell

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

13 min read

DOLBY LABORATORIES, INC. was among the worst performers today. It fell by -1.62% to close at 66.17. During the last week it fell by -1.71% and saw a maximum drawdown of -2.89% before bouncing back.

[Themes containing DLB]

Buy-and-Hold investors in DLB experienced a maximum drawdown of -8.42% over the last three months. It fell by -4.52% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


DLB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 22 Jan, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 10 days, DLB outperformed the SP500 index on 51% days.

During the last three months DLB was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +3.09%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.9%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 27 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +5.53% to investors.

During the last year DLB had 6 profitable months and 6 loss making months. DLB returned profits in fewer months than SP500 index. DLB significantly outperformed SP500 index in Aug 2018, when it returned +8.91% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. DLB had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both DLB and SP500 index significantly outperform during months when quarterly/annual results are announced.

Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.
-- Jim Rogers

DLB 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 DLB's volatility from 2 Oct, 2018 to 29 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 DLB 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 DLB. Therefore, SP500 must receive a lower allocation than DLB in your portfolio. SP500 index usually has shorter drawdown period than DLB.

Based on your interest in DLB you may find it interesting to know that AMRH, AYTU and APRN have all shown remarkable performance and qualify to be on every investor's watchlist.

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