91.39 -0.71 (-0.78%) Buy

VEEV investors herd to book profits while the going is good

13 min read

VEEVA SYSTEMS INC has destroyed investor wealth on Friday. It returned -0.78% to close at 91.39. It is currently trading +68% above it's 52 week low of 54.32 and is down only -16% from it's 52 week high.

[Themes containing VEEV]

VEEV is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning -12.53%) for VEEV's investors than trading long signals.


VEEV has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, VEEV outperformed the SP500 index on 56% days.

VEEV returned losses on 54% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's best daily return of +8.91%, during this period, on Wednesday, 28 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -15.36% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +10.48% to investors.

On monthly basis, VEEV delivered profits in more months over the last year, than losses. VEEV delivered profits less regularly than SP500 index. VEEV significantly outperformed SP500 index in Aug 2018, when it returned +37.99% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VEEV had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen

VEEV 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 VEEV's volatility from 27 Sep, 2018 to 20 Nov, 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 VEEV 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 VEEV. Therefore, SP500 must receive a lower allocation than VEEV in your portfolio. SP500 index usually has shorter drawdown period than VEEV.

On a general note (since you are interested in VEEV), two instruments that deserve special mention are NSPR and AMRH. They have significantly outperformed the overall market.

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