5.22 -0.41 (-7.94%) Sell

VERI investors looking to exit as part of sectoral rotation

13 min read

VERITONE, INC. was among the worst performers on Monday. It delivered -7.94% to close at 5.22 which is it's 52 week low, down -78% from it's 52 week high.

[Themes containing VERI]

VERI is currently in a bearish trend. The current bearish signal has generated a profit of +50.05% for investors in the last three months.


VERI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 26 Sep, 2017 to 16 Nov, 2018. Over the last 1 year 7 months and 2 days, VERI underperformed the SP500 index on 54% days.

VERI returned losses on 63% days in the last three months. During this time, it delivered on average -0.97% per day. It delivered it's best daily return of +22.47%, during this period, on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -25.02% of investor capital.

The last 12 months saw VERI's investors making profits in 1 months and incurring losses in 11 months. VERI was less consistent in delivering monthly returs than SP500 index. VERI significantly outperformed SP500 index in Apr 2018, when it returned +47.3% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VERI had a longer winning streak of losing months than SP500 index. It went down in 8 straight months (from May 2018 to Dec 2018) during which period it delivered -112.3%.

It is time for us to stand and cheer for the doer, the achiever, the one who recognizes the challenge and does something about it.
-- Vince Lombardi

VERI 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 VERI's volatility from 28 Sep, 2018 to 11 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 VERI has significant negative skewness in it's return distribution. This indicates that VERI is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in VERI), two large cap instruments that deserve special mention are V and UNH. They have significantly outperformed the overall market.

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