MALLINCKRODT PLC

20.82 -0.03 (-0.14%) Sell

The party never started for MNK investors as it ranked among the worst performers

13 min read

MNK significantly underperformed today. On a longer term basis, investors in MALLINCKRODT PLC made +0.05% per day. Thursday's performance of -0.14% was a significant underperformance compared to it's daily average.

[Themes containing MNK]

Buy-and-Hold investors in MNK experienced a maximum drawdown of -34.56% over the last three months. It returned -31.74% 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 +18.97%.

Trend

MNK has been underperforming the SP500 index in recent time, after having outperformed till 23 Aug, 2016. Over the last 2 years 11 months and 9 days, MNK underperformed the SP500 index on 52% days.

MNK returned losses on 56% days in the last three months. During this time, it delivered on average -0.53% per day. It delivered it's worst daily return of -17.29%, during this period, on Thursday, 4 Oct, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 8 Nov, 2018. The bullish trend returned +16.08% to investors. This was followed by a bearish trend that started on 16 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -17.16% of investor capital.

On monthly basis, MNK delivered losses in more months over the last year, than profits. MNK delivered profits less regularly than SP500 index. MNK significantly outperformed SP500 index in Aug 2018, when it returned +46.95% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MNK had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

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MNK 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 MNK's volatility from 28 Sep, 2018 to 6 Nov, 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 MNK has significant positive skewness in it's return distribution. This indicates that investors can expect MNK to recover from drawdowns quickly. Which makes MNK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in MNK derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than MNK. Therefore, SP500 must receive a lower allocation than MNK in your portfolio. MNK usually has shorter drawdown period than the SP500 index.

Based on your interest in MNK you may find it interesting to know that AYTU and ~SMALLCAP have both shown remarkable performance and deserve to be on every investors' watchlist.

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