STAAR SURGICAL CO was among the worst performers on Friday. It delivered -5.08% to close at 34.41. It is currently trading +146% above it's 52 week low of 13.95 and is down only -32% from it's 52 week high.
STAA showed a strong bearish trend over the last 3 months. During this period STAA delivered -28.01% and saw a maximum drawdown of -32.22%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in STAA till volatility reduces and a clear trend emerges.
STAA has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 24 May, 2016 to 13 Sep, 2018. Over the last 2 years 11 months and 10 days, STAA outperformed the SP500 index on 50% days. Which indicates that on days STAA outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.
During the last three months STAA was mostly loss making and delivered on average -0.45% per day. It's best return during this period (of +13.38%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -10.22%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 23 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -9.49% of investor capital.
The last 12 months saw STAA's investors making profits in 5 months and incurring losses in 7 months. STAA was less consistent in delivering monthly returs than SP500 index. STAA significantly outperformed SP500 index in May 2018, when it returned +83.08% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. STAA had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
Be quick in cutting your loses but not profits
-- Abhishek Shukla
STAA 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 STAA's volatility from 28 Sep, 2018 to 1 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 STAA 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.
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