3.74 -0.2 (-5.32%) Sell

USAT investors looking to exit as part of sectoral rotation

13 min read

USA TECHNOLOGIES INC was among the worst performers today. It delivered -5.32% to close at 3.74. During the last week it delivered -9.0% and saw a maximum drawdown of -9.66% before bouncing back.

[Themes containing USAT]

Buy-and-Hold investors in USAT experienced a maximum drawdown of -65.05% over the last three months. It delivered -64.38% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +64.38% for investors.


USAT has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 17 Aug, 2018 to 14 Dec, 2018. One must note that USAT is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 10 days, USAT underperformed the SP500 index on 46% days. Which indicates that on days USAT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months USAT was mostly loss making and delivered on average -1.54% per day. It's best return during this period (of +8.44%) was on Tuesday, 9 Oct, 2018. While it's worst loss in the same period (of -13.79%) was on Friday, 21 Sep, 2018. The longest stort-term trend during this period was 8 losing days, which started on 2 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -22.98% of investor capital.

The last 12 months saw USAT's investors making profits in 5 months and incurring losses in 7 months. USAT was less consistent in delivering monthly returs than SP500 index. USAT was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -55.69% compared to -7.28% returned by SP500 index in Oct 2018. USAT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"There can be no rise in the value of labour without a fall of profits.

USAT 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 USAT's volatility from 17 Sep, 2018 to 19 Sep, 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 USAT has significant positive skewness in it's return distribution. This indicates that investors can expect USAT to recover from drawdowns quickly. Which makes USAT 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 USAT. Therefore, SP500 must receive a lower allocation than USAT in your portfolio. USAT usually has shorter drawdown period than the SP500 index.

Based on your interest in USAT you may find it interesting to know that APRN, AYTU and SBOT have all shown remarkable performance and qualify to be on every investor's watchlist.

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