56.09 +0.32 (+0.57%) Sell

SITE shows sign of weakness as investors do cost averaging

13 min read

SITEONE LANDSCAPE SUPPLY, INC. ranked better than it's peers on Tuesday. It delivered +0.57% to close at 56.09. On a day when the overall market breadth was 34%, it closed higher than 3% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Themes containing SITE]

SITE showed a strong bearish trend over the last 3 months. During this period SITE fell by -33.88% and saw a maximum drawdown of -35.77%. There was a short signal during this period which returned +34.26%.


SITE has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 May, 2016 to 20 Jun, 2018. Over the last 2 years 7 months and 6 days, SITE outperformed the SP500 index on 54% days.

During the last three months SITE was mostly loss making and delivered on average -0.62% per day. It's best return during this period (of +8.0%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -6.1%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 7 Dec, 2018 and ended on 14 Dec, 2018. This bearish trend lost -12.06% of investor capital.

During the last year SITE had 5 profitable months and 7 loss making months. SITE returned profits in fewer months than SP500 index. SITE was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -16.63% compared to -7.75% returned by SP500 index in Dec 2018. SITE had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both SITE and SP500 index significantly outperform during months when quarterly/annual results are announced.

When buying shares, ask yourself, would you buy the whole company?
-- Rene Rivkin

SITE is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SITE's volatility from 24 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SITE 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.

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

Based on your interest in SITE you may find it interesting to know that KEYS, ZBRA and BURL are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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