QRVO is a falling knife, continues to bleed every investor trying to catch it
14 Dec, 201813 min read
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QORVO, INC. delivered massive losses today. It lost -0.41% to close at 60.52. It's recent 5 day performance has been +0.21%, +1.78%, +0.1%, -2.63% and -2.54%.
QRVO is currently in a down trend. The previous short signal in QRVO has not been profitable for investors in general. If you are short on QRVO at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
QRVO has been underperforming the SP500 index in recent time, after having outperformed till 23 May, 2017. Over the last 2 years 11 months and 10 days, QRVO underperformed the SP500 index on 47% days. Which indicates that on days QRVO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
QRVO returned losses on 53% days in the last three months. During this time, it delivered on average -0.28% per day. It delivered it's best daily return of +6.77%, during this period, on Thursday, 1 Nov, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +6.23% to investors. This was followed by a bearish trend that started on 21 Sep, 2018 and ended on 27 Sep, 2018. This bearish trend lost -5.09% of investor capital.
QRVO had 4 profitable and 8 loss making months over the last year. During the last year, QRVO underperformed SP500 index on monthly return basis. QRVO significantly outperformed SP500 index in May 2018, when it returned +19.07% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. QRVO had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -29.21%. It is interesting to note that both QRVO and SP500 index significantly outperform during months when quarterly/annual results are announced.
It's not the employer who pays the wages. Employers only handle the money. It's the customer who pays the wages.
-- Henry Ford
QRVO 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 surge in QRVO's volatility from 21 Sep, 2018 to 5 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 QRVO has significant negative skewness in it's return distribution. This indicates that QRVO is very risky for short-term investment and can significantly underperform for long durations.
SP500 index has more chance of extreme outcomes than QRVO. Therefore, SP500 must receive a lower allocation than QRVO in your portfolio. SP500 index usually has shorter drawdown period than QRVO.
On a general note (since you are interested in QRVO), three large cap instruments that deserve special mention are AMZN, MSFT and UNH. They have all outperformed the market and must be closely watched for investment opportunities.
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