0.366 -0.03 (-8.5%) Sell

Doubt in the minds of SN investors as it ranked among the worst performers

13 min read

SANCHEZ ENERGY CORP was among the worst performers on Friday. It fell by -8.5% to close at 0.366. On a day when the overall market breadth was 35%, it closed higher than 89% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing SN]

SN is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +81.26% for investors.


SN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jan, 2017 to 6 Dec, 2018. Over the last 2 years 11 months and 10 days, SN underperformed the SP500 index on 53% days.

During the last three months SN was mostly loss making and delivered on average -2.56% per day. It's best return during this period (of +29.03%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -42.39%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 4 losing days, which started on 25 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -13.43% of investor capital.

During the last year SN had 4 profitable months and 8 loss making months. SN returned profits in fewer months than SP500 index. SN was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -57.83% compared to -7.28% returned by SP500 index in Oct 2018. SN 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 -188.05%. It is interesting to note that both SN and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.

SN 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 fall in SN's volatility from 17 Sep, 2018 to 25 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

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

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

Based on your interest in SN you may find it interesting to know that IX and OPNT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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