HHS is a falling knife, continues to bleed every investor trying to catch it
14 Dec, 201813 min read
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HARTE HANKS INC significantly underperformed today. It returned -2.57% to close at 3.03. It's recent 5 day performance has been +0.97%, -7.78%, +15.97%, +2.86% and -5.08%.
HHS showed a strong down trend over the last 3 months. During this period HHS returned -58.94% and saw a maximum drawdown of -63.45%. There was a short signal during this period which returned +58.94%.
HHS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, HHS underperformed the SP500 index on 52% days.
During the last three months HHS was mostly loss making and delivered on average -1.3% per day. It's best return during this period (of +15.97%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -12.53%) was on Tuesday, 20 Nov, 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 -19.13% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 6 Nov, 2018. This bullish trend delivered +4.86% to investors.
On monthly basis, HHS delivered losses in more months over the last year, than profits. HHS delivered profits less regularly than SP500 index. HHS was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -40.69% compared to -7.28% returned by SP500 index in Oct 2018. HHS 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 -109.51%.
I don't really enjoy finance and accounting.
-- Holly Branson
HHS 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 HHS's volatility from 17 Sep, 2018 to 8 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 HHS 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 HHS. Therefore, SP500 must receive a lower allocation than HHS in your portfolio. SP500 index usually has shorter drawdown period than HHS.
On a general note (since you are interested in HHS), two large cap instruments that deserve special mention are UNH and V. They have significantly outperformed the overall market.
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