Are you evaluating investing in RDNT? Avoid as it delivered massive losses
14 Dec, 201813 min read
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RADNET, INC. delivered massive losses on Friday. It lost -3.0% to close at 12.28. On a day when the overall market breadth was 35%, it closed higher than 87% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
RDNT showed a strong down trend over the last 3 months. During this period RDNT lost -18.41% and saw a maximum drawdown of -24.48%. There was a short signal during this period which returned +17.97%.
RDNT has been underperforming the SP500 index in recent time, after having outperformed till 16 Oct, 2018. Over the last 2 years 11 months and 10 days, RDNT outperformed the SP500 index on 51% days.
During the last three months RDNT was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +6.1%) was on Friday, 5 Oct, 2018. While it's worst loss in the same period (of -11.67%) was on Friday, 9 Nov, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -5.56% losses to investors. This was followed by a bullish trend that started on 11 Oct, 2018 and ended on 16 Oct, 2018. This bullish trend delivered +6.47% to investors.
RDNT had 6 profitable and 6 loss making months over the last year. During the last year, RDNT underperformed SP500 index on monthly return basis. RDNT significantly outperformed SP500 index in Mar 2018, when it returned +44.0% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. RDNT had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.
RDNT 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 RDNT's volatility from 17 Sep, 2018 to 1 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 RDNT 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 RDNT. Therefore, SP500 must receive a lower allocation than RDNT in your portfolio. SP500 index usually has shorter drawdown period than RDNT.
On a general note (since you are interested in RDNT), PTC is a small cap that deserves to be closely tracked for investment opportunities.
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