SEMG investors hold onto their investments as it marginally outperforms
12 Dec, 201813 min read
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SEMGROUP CORP performed better than the broader market on Wednesday. It returned +0.9% to close at 15.63. It is currently trading -49% below it's 52 week high of 30.8.
SEMG is currently in a down trend. The current bearish signal has generated a profit of +33.21% for investors in the last three months.
SEMG has been underperforming the SP500 index in recent time, after having outperformed till 4 Jan, 2017. Over the last 2 years 11 months and 8 days, SEMG underperformed the SP500 index on 47% days. Which indicates that on days SEMG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months SEMG was mostly loss making and delivered on average -0.6% per day. It's best return during this period (of +7.23%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -9.23%) was on Thursday, 8 Nov, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 1 Oct, 2018. The bullish trend returned +8.15% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -27.99% of investor capital.
On monthly basis, SEMG delivered losses in more months over the last year, than profits. SEMG delivered profits less regularly than SP500 index. SEMG was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -22.51% compared to -7.28% returned by SP500 index in Oct 2018. SEMG 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 -47.34%. It is interesting to note that both SEMG and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Our incomes are like our shoes; if too small, they gall and pinch us; but if too large, they cause us to stumble and to trip.
SEMG 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 SEMG's volatility from 8 Oct, 2018 to 21 Nov, 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 SEMG 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 SEMG. Therefore, SP500 must receive a lower allocation than SEMG in your portfolio. SP500 index usually has shorter drawdown period than SEMG.
On a general note (since you are interested in SEMG), two small cap instruments that deserve special mention are BURL and AAXN. They have significantly outperformed the overall market.
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