SYSCO CORP delivered massive losses on Friday. It lost -0.8% to close at 65.45. On a day when the overall market breadth was 35%, it closed higher than 10% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
Buy-and-Hold investors in SYY experienced a maximum drawdown of -12.3% over the last three months. It lost -10.94% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +10.94% for investors.
During the last three months SYY was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +3.1%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -9.44%) was on Monday, 5 Nov, 2018. There was initially a bullish trend during this period which started on 12 Oct, 2018 and went on till 19 Oct, 2018. The bullish trend returned +3.75% to investors. This was followed by a bearish trend that started on 30 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -3.97% of investor capital.
SYY had 6 profitable and 6 loss making months over the last year. During the last year, SYY underperformed SP500 index on monthly return basis. SYY significantly outperformed SP500 index in Aug 2018, when it returned +11.32% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SYY had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both SYY and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Everything is always feasible if you run a corporate finance exercise: you can always try to come out with a justification on how things could work. But the real issue is to say how do you translate that into practice.
SYY 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 SYY's volatility from 26 Sep, 2018 to 7 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 SYY 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.
Investors trading in SYY derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
On a general note (since you are interested in SYY), three instruments that deserve special mention are PRQR, DFBG and ECYT. They have all outperformed the market and must be closely watched for investment opportunities.
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