MIMECAST LTD

35.32 -1.2 (-3.39%) Sell

Waiting to invest in MIME? Avoid at the moment as it delivered massive losses

13 min read

MIME delivered massive losses today. On a longer term basis, investors in MIMECAST LTD made -0.12% per day. Thursday's performance of -3.39% was a underperformance compared to it's daily average.

[Themes containing MIME]

MIME showed a strong bearish trend over the last 3 months. During this period MIME delivered -16.66% and saw a maximum drawdown of -25.7%. There was a short signal during this period which returned +13.73%.

Trend

MIME has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 28 Jan, 2016 to 20 Jun, 2018. Over the last 2 years 11 months and 9 days, MIME outperformed the SP500 index on 53% days.

During the last three months MIME was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +9.84%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -8.5%) was on Tuesday, 2 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 12 Oct, 2018 and went on till 18 Oct, 2018. This bullish trend returned +15.03% to investors.

The last 12 months saw MIME's investors making profits in 8 months and incurring losses in 4 months. During the last year, MIME and SP500 index had the same number of profitable months. MIME significantly outperformed SP500 index in May 2018, when it returned +17.14% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MIME had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

If all the economists were laid end to end, they'd never reach a conclusion.
-- George Bernard Shaw

MIME is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in MIME's volatility from 28 Sep, 2018 to 26 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 MIME 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 MIME. Therefore, SP500 must receive a lower allocation than MIME in your portfolio. SP500 index usually has shorter drawdown period than MIME.

On a general note (since you are interested in MIME), three small cap instruments that deserve special mention are EHC, AAXN and HQY. They have all outperformed the market and must be closely watched for investment opportunities.

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