PIONEER ENERGY SERVICES CORP has destroyed investor wealth on Thursday. It lost -7.28% to close at 1.91. On a day when the overall market breadth was 35%, it closed higher than 86% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.
Buy-and-Hold investors in PES experienced a maximum drawdown of -44.64% over the last three months. It lost -37.38% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +37.38% for investors.
During the last three months PES was mostly loss making and delivered on average -0.58% per day. It's best return during this period (of +32.14%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -10.86%) 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 24 Sep, 2018. The bullish trend returned +12.49% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 13 Dec, 2018. This bearish trend lost -32.17% of investor capital.
PES had 4 profitable and 8 loss making months over the last year. During the last year, PES underperformed SP500 index on monthly return basis. PES significantly outperformed SP500 index in May 2018, when it returned +59.42% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PES 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 -89.88%. It is interesting to note that both PES and SP500 index significantly outperform during months when quarterly/annual results are announced.
Be quick in cutting your loses but not profits
-- Abhishek Shukla
PES 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 PES's volatility from 25 Sep, 2018 to 3 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 PES 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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