14.73 -0.12 (-0.81%) Sell

Waiting to invest in SCS? Avoid at the moment as it ranked among the worst performers

13 min read

STEELCASE INC ranked among the worst performers on Tuesday. It delivered -0.81% to close at 14.73. It is currently trading -22% below it's 52 week high of 19.05.

[Themes containing SCS]

SCS showed a bearish trend over the last 3 months. During this period SCS delivered -3.73% and saw a maximum drawdown of -22.68%. There were 3 short signals during this period that returned a cumulative of +7.57% to investors.


SCS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 30 Dec, 2016 to 16 Aug, 2018. Over the last 2 years 11 months and 7 days, SCS underperformed the SP500 index on 49% days. Which indicates that on days SCS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

SCS returned losses on 59% days in the last three months. During this time, it delivered on average -0.02% per day. It delivered it's best daily return of +17.96%, during this period, on Friday, 21 Sep, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -10.1% of investor capital.

The last 12 months saw SCS's investors making profits in 5 months and incurring losses in 7 months. SCS was less consistent in delivering monthly returs than SP500 index. SCS significantly outperformed SP500 index in Sep 2018, when it returned +26.71% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SCS 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 SCS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I do not regard a broker as a member of the human race.

SCS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SCS's volatility from 17 Sep, 2018 to 27 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SCS has significant positive skewness in it's return distribution. This indicates that investors can expect SCS to recover from drawdowns quickly. Which makes SCS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in SCS), NFEC has performed really well this year and deserves to be closely tracked for investment opportunities.

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