Monday, 8 June 2020

The Sell Down, The Rebound, The Pandemic




885 stocks were grouped based on their performance during Jan – Mar, Mar – Jun, and Jan – Jun 2020.  All data were taken from Bursa Market Place (Read more here).  About 95% of stocks were battered down during the sell down time frame.  50% of them dropped between 30% to 60%.

During the rebound period (Mar – Jun), the group of stocks which were hammered down the most in Jan - Mar period were the best performers.  If you bought these 11 stocks in Mar, your average return is 187%!  But their YTD performance is still -55%.

Generally, the rebound magnitude is directly proportionate to the magnitude of the sell down.  Will these stocks continue to recoup their loses in the next three months?  We shall update the results by the end of RMCO.


Stay Safe!


Table 1
Sell Down Range
Average Sell Down 
Average Rebound 
Average YTD 
No. Stocks
-80% to -90%
-84%
187%
-55%
11
-70% to -80%
-74%
157%
-32%
48
-60% to -70%
-65%
100%
-30%
89
-50% to -60%
-55%
98%
-12%
147
-40% to -50%
-45%
64%
-10%
150
-30% to -40%
-35%
46%
-5%
160
-20% to -30%
-25%
36%
1%
115
-10% to -20%
-16%
26%
6%
85
0% to -10%
-6%
5%
-1%
39
10% to 0%
4%
20%
25%
27
20% to 10%
13%
128%
156%
8
30% to 20%
22%
132%
184%
4
40% to 30%
33%
415%
587%
1
50% to 40%
n/a
n/a
n/a
0
60% to 50%
59%
12%
77%
1
70% to 60%
n/a
n/a
n/a
0
80% to 70%
n/a
n/a
n/a
0
90% to 80%
n/a
n/a
n/a
0
100% to 90%
n/a
n/a
n/a

Worst Performers (-40% to -90%) During Jan - Mar Period


Disclaimer:  The above analysis does not imply any buy or sell recommendation.  The author disclaims all liabilities arising from any use of the information contained in this article.

Disclosure: The author may have interest in the stocks of the companies in this article.

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