39.1 -1.26 (-3.22%) Sell

Doubt in the minds of SRCL investors as it delivered massive losses

13 min read

STERICYCLE INC has destroyed investor wealth today. It fell by -3.22% to close at 39.1. It's recent 5 day performance has been -1.2%, -2.15%, -0.76%, -0.47% and -3.69%.

[Themes containing SRCL]

SRCL is currently in a bearish trend. The current bearish signal has generated a profit of +37.3% for investors in the last three months.


SRCL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Apr, 2016 to 8 Nov, 2018. Over the last 2 years 11 months and 10 days, SRCL underperformed the SP500 index on 53% days.

SRCL returned losses on 70% days in the last three months. During this time, it delivered on average -0.72% per day. It delivered it's worst daily return of -6.83%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 11 losing days, which started on 30 Nov, 2018 and ended on 17 Dec, 2018. This bearish trend lost -20.67% of investor capital.

During the last year SRCL had 5 profitable months and 7 loss making months. SRCL returned profits in fewer months than SP500 index. SRCL was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -16.84% compared to -7.28% returned by SP500 index in Oct 2018. SRCL 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 -49.26%. It is interesting to note that both SRCL and SP500 index significantly outperform during months when quarterly/annual results are announced.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
-- Peter Lynch.

SRCL 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 SRCL's volatility from 21 Sep, 2018 to 10 Dec, 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 SRCL has significant positive skewness in it's return distribution. This indicates that investors can expect SRCL to recover from drawdowns quickly. Which makes SRCL 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 SRCL. Therefore, SP500 must receive a lower allocation than SRCL in your portfolio. SRCL usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in SRCL), two small cap instruments that deserve special mention are BURL and AAXN. They have significantly outperformed the overall market.

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