UNITED THERAPEUTICS CORP

109.79 +1.31 (+1.19%) Sell

UTHR does a dead cat bounce, it's still too early to buy into it

13 min read

UTHR delivered good returns today. On a longer term basis, investors in UNITED THERAPEUTICS CORP made -0.03% per day. Tuesday's performance of +1.19% was a significant outperformance compared to it's daily average.

[Themes containing UTHR]

Buy-and-Hold investors in UTHR experienced a maximum drawdown of -15.72% over the last three months. It lost -11.02% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.46%.

Trend

UTHR has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, UTHR underperformed the SP500 index on 51% days.

During the last three months UTHR was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +4.81%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -9.63%) was on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 12 Oct, 2018 and went on till 16 Oct, 2018. The bullish trend returned +4.61% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 22 Oct, 2018. This bearish trend lost -3.79% of investor capital.

UTHR had 6 profitable and 6 loss making months over the last year. During the last year, UTHR underperformed SP500 index on monthly return basis. UTHR was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -15.1% compared to -7.28% returned by SP500 index in Oct 2018. UTHR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Finance, like time, devours its own children.
-- Honore de Balzac

UTHR is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in UTHR's volatility from 14 Sep, 2018 to 31 Oct, 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 UTHR 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 UTHR. Therefore, SP500 must receive a lower allocation than UTHR in your portfolio. SP500 index usually has shorter drawdown period than UTHR.

Based on your interest in UTHR you may find it interesting to know that ABMD, LULU and TWTR are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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