3.97 -0.16 (-4.11%) Sell

Waiting to invest in SPN? Avoid at the moment as it significantly underperformed

13 min read

SPN significantly underperformed today. On a longer term basis, investors in SUPERIOR ENERGY SERVICES INC made +0.08% per day. Tuesday's performance of -4.11% was a underperformance compared to it's daily average.

[Themes containing SPN]

SPN showed a strong bearish trend over the last 3 months. During this period SPN delivered -56.94% and saw a maximum drawdown of -63.31%. There were 3 short signals during this period that returned a cumulative of +41.5% to investors.


SPN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 21 Jun, 2016 to 11 Dec, 2018. One must note that SPN is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 7 days, SPN underperformed the SP500 index on 53% days.

SPN returned losses on 56% days in the last three months. During this time, it delivered on average -1.24% per day. It delivered it's worst daily return of -9.63%, during this period, on Monday, 12 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +11.74%) started on 27 Sep, 2018 and went on till 3 Oct, 2018 while the bearish trend (which returned -16.16%) started on 16 Nov, 2018 and went on till 23 Nov, 2018.

The last 12 months saw SPN's investors making profits in 5 months and incurring losses in 7 months. SPN was less consistent in delivering monthly returs than SP500 index. SPN significantly outperformed SP500 index in Apr 2018, when it returned +33.29% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SPN had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -80.72%. It is interesting to note that both SPN and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

SPN 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 SPN's volatility from 27 Sep, 2018 to 26 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 SPN has significant negative skewness in it's return distribution. This indicates that SPN is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SPN), three instruments that have performed similar to SPN are GPRK, PRTS and SEMG. They must all be evaluated as alternative investment options and for diversification.

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