24.2 -0.47 (-1.94%) Sell

Are you evaluating investing in MSGN? Avoid as it delivered massive losses

13 min read

MSG NETWORKS INC. delivered massive losses on Thursday. It lost -1.94% to close at 24.2. It is currently trading +29% above it's 52 week low of 18.65 and is down only -12% from it's 52 week high.

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MSGN showed a flat trend over the last 3 months. During this period MSGN returned -0.62% and saw a maximum drawdown of -13.74%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in MSGN till volatility reduces and a clear trend emerges.


MSGN has been underperforming the SP500 index in recent time, after having outperformed till 26 Apr, 2017. Over the last 2 years 11 months and 9 days, MSGN underperformed the SP500 index on 47% days. Which indicates that on days MSGN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MSGN was mostly profitable and delivered on average +0.03% per day. It's best return during this period (of +6.6%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -10.01%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 14 Sep, 2018 and went on till 18 Sep, 2018. The bullish trend returned 0.0% to investors. This was followed by a bearish trend that started on 5 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -8.17% of investor capital.

MSGN had 6 profitable and 6 loss making months over the last year. During the last year, MSGN underperformed SP500 index on monthly return basis. MSGN significantly outperformed SP500 index in Jun 2018, when it returned +24.09% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MSGN had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Mar 2018 to May 2018) during which period it delivered -20.05%.

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MSGN 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 MSGN's volatility from 18 Sep, 2018 to 2 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 MSGN has significant positive skewness in it's return distribution. This indicates that investors can expect MSGN to recover from drawdowns quickly. Which makes MSGN 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 MSGN. Therefore, SP500 must receive a lower allocation than MSGN in your portfolio. MSGN usually has shorter drawdown period than the SP500 index.

Based on your interest in MSGN you may find it interesting to know that PFE and AMZN are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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