10.41 0.0 (0.0%) Sell

Are you evaluating investing in INN? Wait as it performed worse than the broader market

13 min read

SUMMIT HOTEL PROPERTIES, INC. performed worse than the broader market on Friday. It lost 0.0% to close at 10.41 which is it's 52 week low, down -35% from it's 52 week high.

[Themes containing INN]

INN showed a strong down trend over the last 3 months. During this period INN lost -22.43% and saw a maximum drawdown of -23.06%. There was a short signal during this period which returned +22.43%.


INN has been underperforming the SP500 index in recent time, after having outperformed till 26 Jun, 2017. Over the last 2 years 11 months and 10 days, INN underperformed the SP500 index on 48% days. Which indicates that on days INN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months INN was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +3.18%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.9%) was on Tuesday, 23 Oct, 2018. There was initially a bearish trend during this period which started on 9 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -6.35% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +4.48% to investors.

INN had 4 profitable and 8 loss making months over the last year. During the last year, INN underperformed SP500 index on monthly return basis. INN was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -14.98% compared to -7.28% returned by SP500 index in Oct 2018. INN had a longer winning streak of losing months than SP500 index. It went down in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered -35.66%. It is interesting to note that both INN and SP500 index significantly outperform during months when quarterly/annual results are announced.

Success usually comes to those who are too busy to be looking for it.
-- Henry David Thoreau

INN is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in INN's volatility from 18 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 INN has significant positive skewness in it's return distribution. This indicates that investors can expect INN to recover from drawdowns quickly. Which makes INN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in INN), three large cap instruments that deserve special mention are V, UNH and MSFT. They have all outperformed the market and must be closely watched for investment opportunities.

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