4.54 0.0 (0.0%) Sell

UEPS investors looking to cut their losses short

13 min read

NET 1 UEPS TECHNOLOGIES INC delivered lacklustre performance today. It fell by 0.0% to close at 4.54. It's recent 5 day performance has been -6.58%, -5.45%, +0.78%, +5.59% and -0.21%.

[Themes containing UEPS]

UEPS is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for UEPS's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -32.64%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to UEPS.


UEPS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2016 to 9 Nov, 2018. Over the last 2 years 11 months and 14 days, UEPS underperformed the SP500 index on 51% days.

UEPS returned losses on 54% days in the last three months. During this time, it delivered on average -0.48% per day. It delivered it's worst daily return of -30.86%, during this period, on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 19 Sep, 2018 and went on till 25 Sep, 2018. This bullish trend returned +16.2% to investors.

During the last year UEPS had 4 profitable months and 8 loss making months. UEPS returned profits in fewer months than SP500 index. UEPS was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -22.48% compared to -7.75% returned by SP500 index in Dec 2018. UEPS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -34.85%. It is interesting to note that both UEPS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Thirty to 40 years ago, most financial decisions were fairly simple.
-- Scott Cook

UEPS 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 fall in UEPS's volatility from 20 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that UEPS has significant negative skewness in it's return distribution. This indicates that UEPS is very risky for short-term investment and can significantly underperform for long durations.

SP500 index has more chance of extreme outcomes than UEPS. Therefore, SP500 must receive a lower allocation than UEPS in your portfolio. SP500 index usually has shorter drawdown period than UEPS.

Based on your interest in UEPS you may find it interesting to know that AMRH, RGSE and NSPR have all shown remarkable performance and qualify to be on every investor's watchlist.

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