MAXWELL TECHNOLOGIES INC

2.04 -0.05 (-2.39%) Sell

MXWL is a falling knife, continues to bleed every investor trying to catch it

13 min read

MXWL was among the worst performers today. On a longer term basis, investors in MAXWELL TECHNOLOGIES INC made +0.1% per day. Friday's performance of -2.39% was a significant underperformance compared to it's daily average.

[Themes containing MXWL]

MXWL showed a strong down trend over the last 3 months. During this period MXWL lost -40.52% and saw a maximum drawdown of -44.72%. There was a short signal during this period which returned +40.52%.

Trend

MXWL has been underperforming the SP500 index in recent time, after having outperformed till 26 Jan, 2016. Over the last 2 years 11 months and 10 days, MXWL underperformed the SP500 index on 53% days.

During the last three months MXWL was mostly loss making and delivered on average -0.74% per day. It's best return during this period (of +10.89%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -12.06%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +7.41% to investors. This was followed by a bearish trend that started on 6 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -31.03% of investor capital.

MXWL had 4 profitable and 8 loss making months over the last year. During the last year, MXWL underperformed SP500 index on monthly return basis. MXWL was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -22.22% compared to -7.28% returned by SP500 index in Oct 2018. MXWL had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -88.39%.

Don't tell me what you value, show me your budget, and I'll tell you what you value.
-- Joe Biden

MXWL 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 fall in MXWL's volatility from 17 Sep, 2018 to 10 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that MXWL has significant negative skewness in it's return distribution. This indicates that MXWL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MXWL), two mid cap instruments that deserve special mention are TWTR and ABMD. They have significantly outperformed the overall market.

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