VUZIX CORP

5.13 -0.13 (-2.47%) Sell

VUZI is a falling knife, continues to bleed every investor trying to catch it

13 min read

VUZIX CORP was among the worst performers today. It lost -2.47% to close at 5.13. It's recent 5 day performance has been -4.36%, -2.31%, +0.18%, +2.0% and 0.0%.

[Themes containing VUZI]

VUZI showed a strong down trend over the last 3 months. During this period VUZI lost -17.26% and saw a maximum drawdown of -26.29%. There were 2 short signals during this period that returned a cumulative of +2.57% to investors.

Trend

VUZI has been underperforming the SP500 index in recent time, after having outperformed till 8 Sep, 2016. Over the last 2 years 11 months and 14 days, VUZI underperformed the SP500 index on 51% days.

VUZI returned losses on 59% days in the last three months. During this time, it delivered on average -0.23% per day. It delivered it's best daily return of +10.48%, during this period, on Thursday, 20 Sep, 2018. There was initially a bullish trend during this period which started on 5 Oct, 2018 and went on till 9 Oct, 2018. The bullish trend returned +11.35% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -9.63% of investor capital.

VUZI had 6 profitable and 6 loss making months over the last year. During the last year, VUZI underperformed SP500 index on monthly return basis. VUZI significantly outperformed SP500 index in Jan 2018, when it returned +44.44% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VUZI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both VUZI and SP500 index significantly outperform during months when quarterly/annual results are announced.

A real entrepreneur is somebody who has no safety net underneath them.
-- Henry Kravis

VUZI 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 fall in VUZI's volatility from 19 Sep, 2018 to 29 Nov, 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 VUZI 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 VUZI. Therefore, SP500 must receive a lower allocation than VUZI in your portfolio. SP500 index usually has shorter drawdown period than VUZI.

On a general note (since you are interested in VUZI), three mid cap instruments that deserve special mention are RHT, LULU and EW. They have all outperformed the market and must be closely watched for investment opportunities.

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