ORMAT TECHNOLOGIES, INC. ranked better than it's peers on Wednesday. It delivered +0.62% to close at 53.91. On a day when the overall market breadth was 35%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.
ORA showed a bearish trend over the last 3 months. During this period ORA fell by -3.44% and saw a maximum drawdown of -14.37%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ORA till volatility reduces and a clear trend emerges.
ORA has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 31 Jan, 2018 to 8 Aug, 2018. Over the last 2 years 11 months and 8 days, ORA outperformed the SP500 index on 55% days.
During the last three months ORA delivered profits on 57% days. However, it still managed to end this period in a loss. It's best return during this period (of +7.37%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -9.57%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 26 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +6.84% to investors.
During the last year ORA had 6 profitable months and 6 loss making months. ORA returned profits in fewer months than SP500 index. ORA was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.7% compared to -7.28% returned by SP500 index in Oct 2018. ORA had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ORA and SP500 index significantly outperform during months when quarterly/annual results are announced.
Buy when everyone else is selling and hold until everyone else is buying. That's not just a catchy slogan. It's the very essence of successful investing.
-- J. Paul Getty
ORA is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ORA's volatility from 14 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ORA 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.
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