4.47 -0.04 (-0.89%) Sell

Don't buy SPWH now, it is a volatile investment

13 min read

SPORTSMAN'S WAREHOUSE HOLDINGS, INC. was among the worst performers today. It returned -0.89% to close at 4.47. It's recent 5 day performance has been -1.53%, +0.44%, 0.0%, +2.47% and -1.98%.

[Themes containing SPWH]

SPWH showed a strong down trend over the last 3 months. During this period SPWH returned -27.67% and saw a maximum drawdown of -31.64%. There were 2 short signals during this period that returned a cumulative of +7.84% to investors.


SPWH has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, SPWH underperformed the SP500 index on 49% days. Which indicates that on days SPWH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

SPWH returned losses on 61% days in the last three months. During this time, it delivered on average -0.48% per day. It delivered it's worst daily return of -7.54%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 22 Oct, 2018 and went on till 24 Oct, 2018. The bullish trend returned +3.54% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 19 Nov, 2018. This bearish trend lost -8.28% of investor capital.

On monthly basis, SPWH delivered losses in more months over the last year, than profits. SPWH delivered profits less regularly than SP500 index. SPWH significantly outperformed SP500 index in Apr 2018, when it returned +25.06% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SPWH had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.
-- Franklin D. Roosevelt

SPWH 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 SPWH's volatility from 17 Sep, 2018 to 29 Nov, 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 SPWH has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in SPWH), two instruments that have been extremely volatile in recent times are NVCN and IMTE. Investors in these instruments should consider reducing their exposure (to NVCN and IMTE) and diversifying their portfolios.

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