SILGAN HOLDINGS INC

25.13 -0.07 (-0.28%) Sell

Looking to invest in SLGN? Avoid at the moment as it delivered massive losses

13 min read

SILGAN HOLDINGS INC delivered massive losses on Thursday. It fell by -0.28% to close at 25.13. On a day when the overall market breadth was 35%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing SLGN]

SLGN showed a strong bearish trend over the last 3 months. During this period SLGN fell by -11.04% and saw a maximum drawdown of -18.58%. There was a short signal during this period which returned +5.23%.

Trend

SLGN has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Feb, 2016 to 7 Nov, 2018. Over the last 2 years 11 months and 9 days, SLGN underperformed the SP500 index on 51% days.

During the last three months SLGN was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +2.56%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -9.77%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 4 losing days, which started on 9 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -5.53% of investor capital.

During the last year SLGN had 5 profitable months and 7 loss making months. SLGN returned profits in fewer months than SP500 index. SLGN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.03% compared to -7.28% returned by SP500 index in Oct 2018. SLGN and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both SLGN and SP500 index significantly outperform during months when quarterly/annual results are announced.

A stock broker is one who invests other people's money until its all gone.
-- Woody Allen

SLGN 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 SLGN's volatility from 8 Oct, 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 SLGN has significant positive skewness in it's return distribution. This indicates that investors can expect SLGN to recover from drawdowns quickly. Which makes SLGN 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 SLGN. Therefore, SP500 must receive a lower allocation than SLGN in your portfolio. SP500 index usually has shorter drawdown period than SLGN.

On a general note (since you are interested in SLGN), three small cap instruments that deserve special mention are BURL, EHC and AAXN. They have all outperformed the market and must be closely watched for investment opportunities.

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