3.17 -0.04 (-1.25%) Sell

The party never started for LLNW investors as it significantly underperforms

13 min read

LIMELIGHT NETWORKS, INC. ranked among the worst performers on Tuesday. It returned -1.25% to close at 3.17. On a day when the overall market breadth was 35%, it closed higher than 15% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing LLNW]

Buy-and-Hold investors in LLNW experienced a maximum drawdown of -40.42% over the last three months. It returned -35.83% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +25.41%.


LLNW has been underperforming the SP500 index in recent time, after having outperformed till 14 Nov, 2017. Over the last 2 years 11 months and 7 days, LLNW outperformed the SP500 index on 49% days. Which indicates that on days LLNW outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

LLNW returned losses on 60% days in the last three months. During this time, it delivered on average -0.65% per day. It delivered it's worst daily return of -16.34%, during this period, on Friday, 19 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 18 Sep, 2018. The bullish trend returned +3.2% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -13.01% of investor capital.

On monthly basis, LLNW delivered losses in more months over the last year, than profits. LLNW delivered profits less regularly than SP500 index. LLNW was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -18.36% compared to -7.28% returned by SP500 index in Oct 2018. LLNW had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -38.87%. It is interesting to note that both LLNW and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.

LLNW 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 LLNW's volatility from 24 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in LLNW you may find it interesting to know that BLRX has delivered similar performance as LLNW and can be considered as an alternative investment candidate (to LLNW).

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