ELDORADO RESORTS, INC.

38.37 -1.81 (-4.72%) Sell

ERI investors hurt by serious losses

13 min read

ERI was among the worst performers today. On a longer term basis, investors in ELDORADO RESORTS, INC. made +0.24% per day. Friday's performance of -4.72% was a underperformance compared to it's daily average.

[Themes containing ERI]

Buy-and-Hold investors in ERI experienced a maximum drawdown of -33.96% over the last three months. It fell by -16.5% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +16.5% for investors.

Trend

ERI has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 Feb, 2016 to 24 Aug, 2018. Over the last 2 years 11 months and 3 days, ERI outperformed the SP500 index on 53% days.

During the last three months ERI delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +9.85%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -10.11%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 21 Nov, 2018 and went on till 30 Nov, 2018. This bullish trend returned +28.12% to investors.

During the last year ERI had 7 profitable months and 5 loss making months. ERI returned profits in fewer months than SP500 index. ERI significantly outperformed SP500 index in Apr 2018, when it returned +26.17% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ERI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ERI and SP500 index significantly outperform during months when quarterly/annual results are announced.

It is not the man who has too little, but the man who craves more, that is poor.
-- Seneca

ERI 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 ERI's volatility from 10 Sep, 2018 to 29 Oct, 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 ERI 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 ERI. Therefore, SP500 must receive a lower allocation than ERI in your portfolio. SP500 index usually has shorter drawdown period than ERI.

Based on your interest in ERI you may find it interesting to know that HQY, BURL and EHC are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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