17.24 -0.11 (-0.63%) Sell

TSG is a falling knife, continues to bleed every investor trying to catch it

13 min read

STARS GROUP INC. (Foreign) delivered massive losses today. It lost -0.63% to close at 17.24. During the last week it lost -8.88% and saw a maximum drawdown of -8.88%.

[Themes containing TSG]

TSG is currently in a down trend. Over the last three months 4 bearish signals have generated a profit of +10.02% for investors.


TSG has been underperforming the SP500 index in recent time, after having outperformed till 21 Jun, 2018. Over the last 2 years 11 months and 7 days, TSG outperformed the SP500 index on 50% days. Which indicates that on days TSG outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months TSG was mostly loss making and delivered on average -0.45% per day. It's best return during this period (of +7.58%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -9.03%) was on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 11 Oct, 2018 and went on till 17 Oct, 2018. The bullish trend returned +8.83% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -13.48% of investor capital.

TSG had 6 profitable and 6 loss making months over the last year. During the last year, TSG underperformed SP500 index on monthly return basis. TSG was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -17.2% compared to -7.28% returned by SP500 index in Oct 2018. TSG and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both TSG and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

TSG 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 TSG's volatility from 17 Oct, 2018 to 8 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that TSG 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 TSG. Therefore, SP500 must receive a lower allocation than TSG in your portfolio. SP500 index usually has shorter drawdown period than TSG.

Based on your interest in TSG you may find it interesting to know that LULU and TWTR are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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