SHAW COMMUNICATIONS INC (FOREIGN)

18.7 +0.13 (+0.7%) Buy

SJR continues to mint money for it's investors

13 min read

SHAW COMMUNICATIONS INC (Foreign) outperformed on Tuesday. It surged by +0.7% to close at 18.7. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing SJR]

SJR showed a bearish trend over the last 3 months. During this period SJR fell by -3.51% and saw a maximum drawdown of -7.69%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SJR till volatility reduces and a clear trend emerges.

Trend

SJR has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2017 to 25 Sep, 2018. Over the last 2 years 11 months and 7 days, SJR underperformed the SP500 index on 50% days. Which indicates that on days SJR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

SJR was profitable on 52% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's worst daily return of -4.37%, during this period, on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 12 Sep, 2018 and went on till 18 Sep, 2018. This bullish trend returned +1.94% to investors.

During the last year SJR had 4 profitable months and 8 loss making months. SJR returned profits in fewer months than SP500 index. SJR was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -11.36% compared to -7.28% returned by SP500 index in Oct 2018. SJR had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -16.25%. It is interesting to note that both SJR and SP500 index significantly outperform during months when quarterly/annual results are announced.

Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each.
-- Christopher Rice

SJR 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 SJR's volatility from 14 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SJR has significant positive skewness in it's return distribution. This indicates that investors can expect SJR to recover from drawdowns quickly. Which makes SJR 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 SJR. Therefore, SP500 must receive a lower allocation than SJR in your portfolio. SP500 index usually has shorter drawdown period than SJR.

On a general note (since you are interested in SJR), two large cap instruments that deserve special mention are PFE and AMZN. They have significantly outperformed the overall market.

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