5.01 -0.2 (-4.02%) Sell

Stop-loss on the minds of IVC investors as it significantly underperforms

13 min read

INVACARE CORP ranked among the worst performers on Thursday. It lost -4.02% to close at 5.01. It is currently trading -74% below it's 52 week high of 19.75.

[Themes containing IVC]

IVC is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +69.84% for investors.


IVC has been underperforming the SP500 index in recent time, after having outperformed till 16 Feb, 2016. Over the last 2 years 11 months and 9 days, IVC underperformed the SP500 index on 51% days.

During the last three months IVC was mostly loss making and delivered on average -1.59% per day. It's best return during this period (of +9.38%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -43.41%) was on Tuesday, 6 Nov, 2018. There was initially a bearish trend during this period which started on 17 Sep, 2018 and went on till 24 Sep, 2018. The trend delivered -12.92% losses to investors. This was followed by a bullish trend that started on 20 Nov, 2018 and ended on 23 Nov, 2018. This bullish trend delivered +12.47% to investors.

IVC had 4 profitable and 8 loss making months over the last year. During the last year, IVC underperformed SP500 index on monthly return basis. IVC was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -57.43% compared to -7.28% returned by SP500 index in Oct 2018. IVC 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 -101.87%. It is interesting to note that both IVC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don't quit.
-- Conrad Hilton

IVC 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 IVC's volatility from 14 Sep, 2018 to 6 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 IVC has significant positive skewness in it's return distribution. This indicates that investors can expect IVC to recover from drawdowns quickly. Which makes IVC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in IVC you may find it interesting to know that NIHD has shown remarkable performance this year and deserves to be on every investors' watchlist.

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