EXTENDED STAY AMERICA, INC. was among the best performers on Thursday. It returned +0.71% to close at 17.08. It is currently trading -24% below it's 52 week high of 22.52.
STAY is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +9.36% for investors.
During the last three months STAY was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +12.9%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.91%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 24 Sep, 2018 and went on till 27 Sep, 2018. The bullish trend returned +2.62% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -15.72% of investor capital.
On monthly basis, STAY delivered profits and losses in equal number of months. STAY delivered profits less regularly than SP500 index. STAY was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.31% compared to -7.28% returned by SP500 index in Oct 2018. STAY had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both STAY and SP500 index significantly outperform during months when quarterly/annual results are announced.
Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros
STAY is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in STAY's volatility from 17 Sep, 2018 to 1 Nov, 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 STAY has significant positive skewness in it's return distribution. This indicates that investors can expect STAY to recover from drawdowns quickly. Which makes STAY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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