0.31 +0.01 (+1.97%) Sell

Profit booking on the minds of GSAT investors as it shows marginal outperformance

13 min read

GLOBALSTAR, INC. delivered good returns today. It grew by +1.97% to close at 0.31. It's recent 5 day performance has been -7.6%, -1.2%, -6.98%, -2.19% and 0.0%.

[Themes containing GSAT]

GSAT is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +14.24% for investors.


GSAT has been underperforming the SP500 index in recent time, after having outperformed till 16 May, 2016. Over the last 2 years 11 months and 9 days, GSAT underperformed the SP500 index on 53% days.

During the last three months GSAT was mostly loss making and delivered on average -0.73% per day. It's best return during this period (of +12.5%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -11.06%) was on Monday, 15 Oct, 2018. There was initially a bearish trend during this period which started on 19 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -16.61% losses to investors. This was followed by a bullish trend that started on 31 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +13.91% to investors.

GSAT had 3 profitable and 9 loss making months over the last year. During the last year, GSAT underperformed SP500 index on monthly return basis. GSAT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -30.12% compared to -7.28% returned by SP500 index in Oct 2018. GSAT had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -55.06%. It is interesting to note that both GSAT and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There is a huge amount of freedom that is derived from not fighting the market.

GSAT is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in GSAT's volatility from 4 Oct, 2018 to 11 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 GSAT has positive skewness in it's return distribution. This indicates that investors can expect GSAT to make attempts to recover from drawdowns quickly. Which makes GSAT a good candidate for momentum based trading on short-term bullish trends or counter-trends.

SP500 index has more chance of extreme outcomes than GSAT. Therefore, SP500 must receive a lower allocation than GSAT in your portfolio. SP500 index usually has shorter drawdown period than GSAT.

Based on your interest in GSAT you may find it interesting to know that OVID, SEII and TEUM have all performed similar to GSAT and qualify as alternative investment candidates that must be evaluated for diversification.

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