MONARCH CASINO & RESORT INC

38.98 -1.16 (-2.99%) Sell

MCRI investors dump it for better alternatives

13 min read

MCRI significantly underperformed today. On a longer term basis, investors in MONARCH CASINO & RESORT INC made -0.06% per day. Thursday's performance of -2.99% was a significant underperformance compared to it's daily average.

[Themes containing MCRI]

Buy-and-Hold investors in MCRI experienced a maximum drawdown of -19.47% over the last three months. It lost -15.26% 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 +6.52%.

Trend

MCRI has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, MCRI outperformed the SP500 index on 50% days. Which indicates that on days MCRI outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

MCRI returned losses on 54% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's worst daily return of -5.82%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 28 Sep, 2018. The bullish trend returned +1.58% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 19 Oct, 2018. This bearish trend lost -2.78% of investor capital.

MCRI had 6 profitable and 6 loss making months over the last year. During the last year, MCRI underperformed SP500 index on monthly return basis. MCRI was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.43% compared to -7.28% returned by SP500 index in Oct 2018. MCRI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both MCRI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Making money from enforcing patents is no more wrong than investing in preferred stock.
-- Nathan Myhrvold

MCRI 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 MCRI's volatility from 2 Oct, 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 MCRI 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 MCRI. Therefore, SP500 must receive a lower allocation than MCRI in your portfolio. SP500 index usually has shorter drawdown period than MCRI.

Based on your interest in MCRI you may find it interesting to know that IMTE and GNK are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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