25.8 -0.05 (-0.19%) Buy

Waiting to invest in TPIC? Look for alternatives because it underperformed

13 min read

TPIC significantly underperformed today. On a longer term basis, investors in TPI COMPOSITES, INC made -0.06% per day. Thursday's performance of -0.19% was a underperformance compared to it's daily average.

[Themes containing TPIC]

TPIC showed a bearish trend over the last 3 months. During this period TPIC delivered -6.08% and saw a maximum drawdown of -18.84%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in TPIC till volatility reduces and a clear trend emerges.


TPIC has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 25 Jul, 2016 to 10 Jul, 2018. Over the last 2 years and 5 months, TPIC outperformed the SP500 index on 49% days. Which indicates that on days TPIC outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

TPIC was profitable on 57% days in the last three months. During this time, it delivered on average -0.07% per day. It delivered it's worst daily return of -7.81%, during this period, on Thursday, 8 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 21 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +15.42% to investors.

The last 12 months saw TPIC's investors making profits in 7 months and incurring losses in 5 months. TPIC was less consistent in delivering monthly returs than SP500 index. TPIC significantly outperformed SP500 index in May 2018, when it returned +16.11% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TPIC had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

You know you are on the road to success if you would do your job, and not be paid for it.
-- Oprah Winfrey

TPIC 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 TPIC's volatility from 26 Sep, 2018 to 12 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 TPIC 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 TPIC. Therefore, SP500 must receive a lower allocation than TPIC in your portfolio. SP500 index usually has shorter drawdown period than TPIC.

On a general note (since you are interested in TPIC), two instruments that deserve special mention are NIHD and TNDM. They have significantly outperformed the overall market this year.

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