43.04 +0.73 (+1.7%) Sell

SLB investors looking to add more to current positions

13 min read

SCHLUMBERGER LIMITED delivered good returns on Friday. It grew by +1.7% to close at 43.04. It is currently trading -46% below it's 52 week high of 79.79.

[Themes containing SLB]

Buy-and-Hold investors in SLB experienced a maximum drawdown of -32.94% over the last three months. It returned -28.24% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +22.67%.


SLB has been underperforming the SP500 index in recent time, after having outperformed till 19 Oct, 2016. Over the last 2 years 11 months and 3 days, SLB underperformed the SP500 index on 54% days.

During the last three months SLB delivered profits on 55% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.66%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -4.71%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 10 Sep, 2018 and went on till 14 Sep, 2018. The bullish trend returned +2.07% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -9.85% of investor capital.

On monthly basis, SLB delivered losses in more months over the last year, than profits. SLB delivered profits less regularly than SP500 index. SLB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.69% compared to -7.28% returned by SP500 index in Oct 2018. SLB 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 -43.37%. It is interesting to note that both SLB and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market clearly values companies that can deliver disruptive innovation.
-- Steve Blank

SLB 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 SLB's volatility from 10 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SLB has significant negative skewness in it's return distribution. This indicates that SLB is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in SLB derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

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

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