FLEXSTEEL INDUSTRIES INC delivered lacklustre performance on Friday. It fell by 0.0% to close at 23.34. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
Buy-and-Hold investors in FLXS experienced a maximum drawdown of -30.77% over the last three months. It fell by -28.97% during this strong 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. The net profit from Short signals was +26.9%.
FLXS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 9 Dec, 2016 to 7 Nov, 2018. Over the last 2 years 11 months and 10 days, FLXS underperformed the SP500 index on 50% days. Which indicates that on days FLXS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months FLXS was mostly loss making and delivered on average -0.5% per day. It's best return during this period (of +3.91%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -17.0%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 5 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -4.35% of investor capital.
During the last year FLXS had 3 profitable months and 9 loss making months. FLXS returned profits in fewer months than SP500 index. FLXS was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -16.65% compared to -7.28% returned by SP500 index in Oct 2018. FLXS had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -49.62%.
When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal
FLXS 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 FLXS's volatility from 17 Sep, 2018 to 31 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 FLXS has positive skewness in it's return distribution. This indicates that investors can expect FLXS to make attempts to recover from drawdowns quickly. Which makes FLXS a good candidate for momentum based trading on short-term bullish trends or counter-trends.
Based on your interest in FLXS you may find it interesting to know that SRLP has delivered similar performance as FLXS and can be considered as an alternative investment candidate (to FLXS).
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