7.86 +0.6 (+7.67%) Sell

Don't give up on MDR now, it gave a fairly good return

13 min read

MCDERMOTT INTERNATIONAL INC delivered good returns on Wednesday. It grew by +7.67% to close at 7.86. It is currently trading -70% below it's 52 week high of 26.94.

[Themes containing MDR]

MDR showed a strong down trend over the last 3 months. During this period MDR returned -57.28% and saw a maximum drawdown of -62.0%. There was a short signal during this period which returned +53.9%.


MDR has been underperforming the SP500 index in recent time, after having outperformed till 1 Feb, 2017. Over the last 2 years 11 months and 8 days, MDR underperformed the SP500 index on 50% days. Which indicates that on days MDR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MDR was mostly loss making and delivered on average -1.07% per day. It's best return during this period (of +13.58%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -39.94%) was on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +5.01% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -23.57% of investor capital.

On monthly basis, MDR delivered losses in more months over the last year, than profits. MDR delivered profits less regularly than SP500 index. MDR was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -56.74% compared to -7.28% returned by SP500 index in Oct 2018. MDR had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both MDR and SP500 index significantly outperform during months when quarterly/annual results are announced.

Time is more value than money. You can get more money, but you cannot get more time.
-- Jim Rohn

MDR 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 MDR's volatility from 18 Sep, 2018 to 31 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 MDR has significant positive skewness in it's return distribution. This indicates that investors can expect MDR to recover from drawdowns quickly. Which makes MDR 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 MDR. Therefore, SP500 must receive a lower allocation than MDR in your portfolio. SP500 index usually has shorter drawdown period than MDR.

On a general note (since you are interested in MDR), AYTU has performed really well and deserves to be closely tracked for investment opportunities.

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