GLOBAL WATER RESOURCES, INC.

9.96 -0.11 (-1.09%) Sell

GWRS investors incur serious losses

13 min read

GLOBAL WATER RESOURCES, INC. ranked among the worst performers on Tuesday. It delivered -1.09% to close at 9.96. On a day when the overall market breadth was 34%, it closed higher than 5% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Themes containing GWRS]

Buy-and-Hold investors in GWRS experienced a maximum drawdown of -14.32% over the last three months. It delivered -1.78% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.

Trend

GWRS has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 28 Apr, 2016 to 1 Nov, 2018. Over the last 2 years and 8 months, GWRS outperformed the SP500 index on 51% days.

During the last three months GWRS was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +5.52%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.22%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -2.89% of investor capital.

The last 12 months saw GWRS's investors making profits in 7 months and incurring losses in 5 months. GWRS was less consistent in delivering monthly returs than SP500 index. GWRS was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -8.71% compared to -7.75% returned by SP500 index in Dec 2018. GWRS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both GWRS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

GWRS 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 GWRS's volatility from 19 Sep, 2018 to 28 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that GWRS 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.

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

Based on your interest in GWRS you may find it interesting to know that AAXN is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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