35.93 -1.72 (-4.8%) Sell

LABL is a falling knife, continues to bleed every investor trying to catch it

13 min read

MULTI COLOR CORP ranked among the worst performers today. It delivered -4.8% to close at 35.93. It's recent 5 day performance has been -2.3%, +0.42%, +0.23%, -3.11% and -2.08%.

[Themes containing LABL]

LABL is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +38.16% for investors.


LABL has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Jun, 2017 to 14 Dec, 2018. One must note that LABL is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 10 days, LABL underperformed the SP500 index on 49% days. Which indicates that on days LABL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LABL was mostly loss making and delivered on average -0.85% per day. It's best return during this period (of +5.25%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -11.9%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 29 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -15.93% of investor capital.

The last 12 months saw LABL's investors making profits in 4 months and incurring losses in 8 months. LABL was less consistent in delivering monthly returs than SP500 index. LABL was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -19.08% compared to -7.28% returned by SP500 index in Oct 2018. LABL had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered -14.52%. It is interesting to note that both LABL and SP500 index significantly outperform during months when quarterly/annual results are announced.

A highly developed stock exchange cannot be a club for the cult of ethics.
-- Max Weber

LABL is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in LABL's volatility from 27 Sep, 2018 to 6 Nov, 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 LABL has significant positive skewness in it's return distribution. This indicates that investors can expect LABL to recover from drawdowns quickly. Which makes LABL 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 LABL. Therefore, SP500 must receive a lower allocation than LABL in your portfolio. LABL usually has shorter drawdown period than the SP500 index.

Based on your interest in LABL you may find it interesting to know that ~CHINAINTERNET, RDWR and HIFR have all performed similar to LABL and qualify as alternative investment candidates that must be evaluated for diversification.

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