PETIQ, INC.

29.85 -0.27 (-0.9%) Sell

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

13 min read

PETIQ, INC. significantly underperformed on Friday. It returned -0.9% to close at 29.85. On a day when the overall market breadth was 35%, it closed higher than 67% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing PETQ]

PETQ showed a strong down trend over the last 3 months. During this period PETQ returned -29.05% and saw a maximum drawdown of -34.82%. There was a short signal during this period which returned +16.99%.

Trend

PETQ has been outperforming the SP500 index in recent time. Over the last 1 year and 5 months, PETQ outperformed the SP500 index on 54% days.

During the last three months PETQ was mostly loss making and delivered on average -0.5% per day. It's best return during this period (of +6.23%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -8.31%) was on Wednesday, 14 Nov, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 27 Sep, 2018. The trend delivered -6.35% losses to investors. This was followed by a bullish trend that started on 20 Nov, 2018 and ended on 26 Nov, 2018. This bullish trend delivered +9.26% to investors.

On monthly basis, PETQ delivered losses in more months over the last year, than profits. PETQ delivered profits less regularly than SP500 index. PETQ significantly outperformed SP500 index in Aug 2018, when it returned +42.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PETQ had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -21.33%.

Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.
-- Warren Buffett

PETQ is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in PETQ's volatility from 19 Sep, 2018 to 24 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 PETQ has significant positive skewness in it's return distribution. This indicates that investors can expect PETQ to recover from drawdowns quickly. Which makes PETQ a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

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