WELBILT, INC.

12.39 -0.05 (-0.4%) Sell

Looking to invest in WBT? Avoid at the moment as it was among the worst performers

14 min read

WELBILT, INC. was among the worst performers on Thursday. It fell by -0.4% to close at 12.39. On a day when the overall market breadth was 35%, it closed higher than 70% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing WBT]

WBT showed a strong bearish trend over the last 3 months. During this period WBT fell by -42.4% and saw a maximum drawdown of -43.73%. There were 2 short signals during this period that returned a cumulative of +39.79% to investors.

Trend

WBT has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 28 Sep, 2017 to 13 Dec, 2018. One must note that WBT is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 9 months and 5 days, WBT underperformed the SP500 index on 48% days. Which indicates that on days WBT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WBT was mostly loss making and delivered on average -0.79% per day. It's best return during this period (of +4.43%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -26.19%) was on Monday, 5 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 24 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -8.12% of investor capital.

During the last year WBT had 4 profitable months and 8 loss making months. WBT returned profits in fewer months than SP500 index. WBT was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -26.18% compared to -7.28% returned by SP500 index in Oct 2018. WBT had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -53.08%. It is interesting to note that both WBT and SP500 index significantly outperform during months when quarterly/annual results are announced.

If all the economists were laid end to end, they'd never reach a conclusion.
-- George Bernard Shaw

WBT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WBT's volatility from 14 Sep, 2018 to 5 Nov, 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 WBT has significant positive skewness in it's return distribution. This indicates that investors can expect WBT to recover from drawdowns quickly. Which makes WBT 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 WBT. Therefore, SP500 must receive a lower allocation than WBT in your portfolio. WBT usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in WBT), three instruments that are extremely volatile are ICPT, IMTE and GNK. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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