PLNT investors re-evaluating their investment strategy
13 Dec, 201813 min read
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PLANET FITNESS, INC. significantly underperformed on Thursday. It fell by -0.82% to close at 54.46. 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%.
PLNT is currently in a bullish trend. The previous long signal in PLNT has not been profitable for investors in general. If you are invested in PLNT at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
PLNT has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Mar, 2016 to 28 Nov, 2018. Over the last 2 years 11 months and 9 days, PLNT outperformed the SP500 index on 54% days.
During the last three months PLNT was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +17.04%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -7.07%) was on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 12 Oct, 2018 and went on till 17 Oct, 2018. This bullish trend returned +8.72% to investors.
During the last year PLNT had 9 profitable months and 3 loss making months. PLNT returned profits in more months than SP500 index. PLNT significantly outperformed SP500 index in Nov 2018, when it returned +12.49% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PLNT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.
Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe
PLNT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in PLNT's volatility from 24 Sep, 2018 to 20 Nov, 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 PLNT 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 PLNT. Therefore, SP500 must receive a lower allocation than PLNT in your portfolio. SP500 index usually has shorter drawdown period than PLNT.
On a general note (since you are interested in PLNT), MSFT is a large cap that deserves to be closely tracked for investment opportunities.
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