9.64 -0.19 (-1.93%) Sell

The party never started for TAST investors as it destroyed investor wealth

13 min read

CARROLS RESTAURANT GROUP, INC. has destroyed investor wealth on Friday. It returned -1.93% to close at 9.64 which is it's 52 week low, down -40% from it's 52 week high.

[Themes containing TAST]

TAST is currently in a down trend. The current bearish signal has generated a profit of +33.52% for investors in the last three months.


TAST has been underperforming the SP500 index in recent time, after having outperformed till 21 Feb, 2017. Over the last 2 years 11 months and 10 days, TAST underperformed the SP500 index on 52% days.

During the last three months TAST was mostly loss making and delivered on average -0.62% per day. It's best return during this period (of +4.35%) was on Wednesday, 26 Sep, 2018. While it's worst loss in the same period (of -8.39%) was on Tuesday, 6 Nov, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +1.37% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 22 Oct, 2018. This bearish trend lost -6.31% of investor capital.

On monthly basis, TAST delivered losses in more months over the last year, than profits. TAST delivered profits less regularly than SP500 index. TAST significantly outperformed SP500 index in May 2018, when it returned +24.27% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TAST had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -44.21%.

"Finance is a gun. Politics is knowing when to pull the trigger.

TAST 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 TAST's volatility from 18 Oct, 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 TAST 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 TAST. Therefore, SP500 must receive a lower allocation than TAST in your portfolio. SP500 index usually has shorter drawdown period than TAST.

On a general note (since you are interested in TAST), two mid cap instruments that deserve special mention are LULU and ABMD. They have significantly outperformed the overall market.

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