HAMILTON BEACH BRANDS HOLDING CO

20.51 -0.36 (-1.77%) Sell

Want to invest in HBB? Avoid as it significantly underperformed

13 min read

HAMILTON BEACH BRANDS HOLDING CO significantly underperformed on Tuesday. It returned -1.77% to close at 20.51. On a day when the overall market breadth was 35%, it closed higher than 81% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing HBB]

HBB showed a strong down trend over the last 3 months. During this period HBB returned -13.31% and saw a maximum drawdown of -23.2%. There were 2 short signals during this period that returned a cumulative of +1.86% to investors.

Trend

HBB has been underperforming the SP500 index in recent time, after having outperformed till 24 Oct, 2017. Over the last 1 year 2 months and 9 days, HBB underperformed the SP500 index on 53% days.

HBB returned losses on 59% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's best daily return of +14.5%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 3 Oct, 2018 and went on till 8 Oct, 2018. The bullish trend returned +2.12% to investors. This was followed by a bearish trend that started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -11.26% of investor capital.

On monthly basis, HBB delivered losses in more months over the last year, than profits. HBB delivered profits less regularly than SP500 index. HBB significantly outperformed SP500 index in May 2018, when it returned +25.98% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HBB 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 HBB and SP500 index significantly outperform during months when quarterly/annual results are announced.

I always said that if I wasn't studying psychopaths in prison, I'd do it at the stock exchange.
-- Robert D. Hare

HBB 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 HBB's volatility from 13 Sep, 2018 to 12 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HBB has significant negative skewness in it's return distribution. This indicates that HBB is very risky for short-term investment and can significantly underperform for long durations.

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

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

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