113.56 -4.26 (-3.75%) Sell

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

13 min read

PROTO LABS INC was among the worst performers today. It lost -3.75% to close at 113.56. It's recent 5 day performance has been -1.61%, +3.42%, -0.42%, +0.25% and -3.32%.

[Themes containing PRLB]

PRLB is currently in a down trend. The current bearish signal has generated a profit of +18.62% for investors in the last three months.


PRLB has been underperforming the SP500 index in recent time, after having outperformed till 14 Sep, 2018. Over the last 2 years 11 months and 10 days, PRLB outperformed the SP500 index on 56% days.

PRLB returned losses on 59% days in the last three months. During this time, it delivered on average -0.51% per day. It delivered it's worst daily return of -8.64%, during this period, on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -20.94% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +6.95% to investors.

PRLB had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of PRLB and SP500 index were the same. PRLB significantly outperformed SP500 index in Aug 2018, when it returned +24.71% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PRLB had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both PRLB and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

PRLB 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 PRLB's volatility from 27 Sep, 2018 to 29 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 PRLB 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 PRLB. Therefore, SP500 must receive a lower allocation than PRLB in your portfolio. SP500 index usually has shorter drawdown period than PRLB.

On a general note (since you are interested in PRLB), two small cap instruments that deserve special mention are KEYS and EHC. They have significantly outperformed the overall market.

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