41.26 -0.99 (-2.39%) Sell

Waiting to invest in THRM? Avoid at the moment as it was among the worst performers

13 min read

GENTHERM INC was among the worst performers on Friday. It delivered -2.39% to close at 41.26. It is currently trading +34% above it's 52 week low of 30.65 and is down only -16% from it's 52 week high.

[Themes containing THRM]

THRM showed a strong bearish trend over the last 3 months. During this period THRM delivered -13.77% and saw a maximum drawdown of -23.97%. There was a short signal during this period which returned +9.22%.


THRM has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2016 to 26 Jan, 2018. Over the last 2 years 11 months and 10 days, THRM underperformed the SP500 index on 49% days. Which indicates that on days THRM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months THRM was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +8.46%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -6.23%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 26 Sep, 2018 and ended on 5 Oct, 2018. This bearish trend lost -7.94% of investor capital.

The last 12 months saw THRM's investors making profits in 7 months and incurring losses in 5 months. THRM was less consistent in delivering monthly returs than SP500 index. THRM significantly outperformed SP500 index in Jul 2018, when it returned +14.54% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. THRM and SP500 index, both had periods of 6 consecutive profitable months.

Every time you borrow money, you're robbing your future self.
-- Nathan W. Morris

THRM 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 THRM's volatility from 17 Sep, 2018 to 26 Oct, 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 THRM has significant positive skewness in it's return distribution. This indicates that investors can expect THRM to recover from drawdowns quickly. Which makes THRM 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 THRM. Therefore, SP500 must receive a lower allocation than THRM in your portfolio. SP500 index usually has shorter drawdown period than THRM.

Based on your interest in THRM you may find it interesting to know that JBSS, AAL and IMKTA have all performed similar to THRM and qualify as alternative investment candidates that must be evaluated for diversification.

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