1.72 +0.16 (+9.55%) Sell

NEON investors elated by performance

13 min read

NEONODE INC. was among the best performers today. It returned +9.55% to close at 1.72. During the last week it returned +6.83% and saw a maximum drawdown of -7.65% before bouncing back.

Buy-and-Hold investors in NEON experienced a maximum drawdown of -58.33% over the last three months. It lost -33.85% 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.


NEON has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, NEON underperformed the SP500 index on 53% days.

During the last three months NEON was mostly loss making and delivered on average -0.42% per day. It's best return during this period (of +17.09%) was on Friday, 28 Sep, 2018. While it's worst loss in the same period (of -18.55%) was on Tuesday, 13 Nov, 2018. There was initially a bearish trend during this period which started on 24 Oct, 2018 and went on till 31 Oct, 2018. The trend delivered -28.38% losses to investors. This was followed by a bullish trend that started on 7 Dec, 2018 and ended on 12 Dec, 2018. This bullish trend delivered +6.79% to investors.

NEON had 3 profitable and 9 loss making months over the last year. During the last year, NEON underperformed SP500 index on monthly return basis. NEON was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -45.7% compared to -7.28% returned by SP500 index in Oct 2018. NEON had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -76.92%. It is interesting to note that both NEON and SP500 index significantly outperform during months when quarterly/annual results are announced.

Too many people spend money they buy things they don't impress people that they don't like.
-- Will Rogers

NEON 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 NEON's volatility from 18 Sep, 2018 to 20 Sep, 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 NEON has significant negative skewness in it's return distribution. This indicates that NEON is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in NEON), HEAR has performed really well this year and deserves to be closely tracked for investment opportunities.

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