PATRICK INDUSTRIES INC

30.94 -1.19 (-3.85%) Sell

Don't even consider investing in PATK now, it is a risky investment

13 min read

PATRICK INDUSTRIES INC has destroyed investor wealth on Thursday. It fell by -3.85% to close at 30.94. On a day when the overall market breadth was 35%, it closed higher than 3% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing PATK]

PATK showed a strong bearish trend over the last 3 months. During this period PATK fell by -53.05% and saw a maximum drawdown of -53.51%. There was a short signal during this period which returned +48.35%.

Trend

PATK has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Feb, 2016 to 2 Jan, 2018. Over the last 2 years 11 months and 9 days, PATK underperformed the SP500 index on 46% days. Which indicates that on days PATK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PATK was mostly loss making and delivered on average -1.15% per day. It's best return during this period (of +8.5%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -9.18%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -29.79% of investor capital.

During the last year PATK had 4 profitable months and 8 loss making months. PATK returned profits in fewer months than SP500 index. PATK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -23.56% compared to -7.28% returned by SP500 index in Oct 2018. PATK had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -61.87%.

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

PATK 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 PATK's volatility from 28 Sep, 2018 to 25 Oct, 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 PATK 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.

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

On a general note (since you are interested in PATK), HQY is a small cap that deserves to be closely tracked for investment opportunities.

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