INTER PARFUMS INC

60.39 +1.05 (+1.74%) Buy

IPAR continues to mint money for it's investors

13 min read

IPAR outperformed the broader market today. On a longer term basis, investors in INTER PARFUMS INC made -0.06% per day. Tuesday's performance of +1.74% was a outperformance compared to it's daily average.

[Themes containing IPAR]

IPAR showed a bearish trend over the last 3 months. During this period IPAR delivered -3.38% and saw a maximum drawdown of -13.7%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in IPAR till volatility reduces and a clear trend emerges.

Trend

IPAR has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jan, 2016 to 24 Aug, 2018. Over the last 2 years 11 months and 7 days, IPAR outperformed the SP500 index on 54% days.

During the last three months IPAR delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.32%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.85%) was on Tuesday, 13 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 27 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +6.67% to investors.

The last 12 months saw IPAR's investors making profits in 8 months and incurring losses in 4 months. During the last year, IPAR and SP500 index had the same number of profitable months. IPAR significantly outperformed SP500 index in Jul 2018, when it returned +11.69% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. IPAR and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both IPAR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.

IPAR is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in IPAR's volatility from 12 Sep, 2018 to 13 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that IPAR 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 IPAR. Therefore, SP500 must receive a lower allocation than IPAR in your portfolio. SP500 index usually has shorter drawdown period than IPAR.

On a general note (since you are interested in IPAR), ABMD is a mid cap that deserves to be closely tracked for investment opportunities.

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