MEDIDATA SOLUTIONS, INC.

68.89 -2.37 (-3.43%) Buy

MDSO investors doing a reality check

13 min read

MEDIDATA SOLUTIONS, INC. ranked among the worst performers on Monday. It returned -3.43% to close at 68.89. It is currently trading -21% below it's 52 week high of 88.28.

[Themes containing MDSO]

Buy-and-Hold investors in MDSO experienced a maximum drawdown of -13.45% over the last three months. It returned -9.19% during this 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.

Trend

MDSO has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, MDSO outperformed the SP500 index on 51% days.

During the last three months MDSO was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +6.4%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.49%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 20 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -4.3% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 29 Nov, 2018. This bullish trend delivered +6.32% to investors.

On monthly basis, MDSO delivered profits and losses in equal number of months. MDSO delivered profits less regularly than SP500 index. MDSO significantly outperformed SP500 index in Apr 2018, when it returned +15.23% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MDSO 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 MDSO and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money often costs too much.
-- Ralph Waldo Emerson

MDSO 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 MDSO's volatility from 2 Oct, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in MDSO you may find it interesting to know that HEAR, I and NFEC have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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