32.61 +0.52 (+1.59%) Buy

LN continues to mint money for it's investors

13 min read

LINE CORP (Foreign) outperformed the broader market on Tuesday. It increased by +1.59% to close at 32.61. On a day when the overall market breadth was 35%, it closed higher than 97% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing LN]

LN showed a strong bearish trend over the last 3 months. During this period LN fell by -21.16% and saw a maximum drawdown of -36.94%. There was a short signal during this period which returned +17.79%.


LN has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Sep, 2016 to 10 Nov, 2016. Over the last 2 years and 5 months, LN underperformed the SP500 index on 50% days. Which indicates that on days LN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LN was mostly loss making and delivered on average -0.31% per day. It's best return during this period (of +10.17%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -15.45%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 27 Sep, 2018 and ended on 5 Oct, 2018. This bearish trend lost -14.27% of investor capital.

During the last year LN had 6 profitable months and 6 loss making months. LN returned profits in fewer months than SP500 index. LN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -24.51% compared to -7.28% returned by SP500 index in Oct 2018. LN had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

LN 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 LN's volatility from 27 Sep, 2018 to 29 Oct, 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 LN 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 LN. Therefore, SP500 must receive a lower allocation than LN in your portfolio. SP500 index usually has shorter drawdown period than LN.

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

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