____________
Inside The PPT, the seasonality statistics for JMBA are quite impressive, indeed. As you can see below, returns during March and April over the past five/six years have been staggering, especially when compared to other months of the year. What accounts for this? Well, the easy answer is that the JMBA business model is going to thrive in most parts of the country during the late spring and summer months. So, hedge funds are probably accumulating in March and April to get out in front of the expected uptick in earnings.
Seasonality
Month Avg % Return Total # Months # Months UP # Months DOWN January -0.458 6 2 (33.33%) 4 (66.67%) February -2.579 6 4 (66.67%) 2 (33.33%) March 21.524 5 4 (80%) 1 (20%) April 18.093 5 3 (60%) 2 (40%) May -0.783 5 2 (40%) 3 (60%) June -4.646 5 1 (20%) 4 (80%) July -15.503 5 0 (0%) 5 (100%) August 1.03 6 2 (33.33%) 4 (66.67%) September 10.529 6 4 (66.67%) 2 (33.33%) October -9.214 6 2 (33.33%) 4 (66.67%) November -1.546 6 3 (50%) 3 (50%) December -4.797 6 3 (50%) 3 (50%)
___________
Beyond the statistics, a look at a zoomed out daily chart supports the idea that JMBA is ready to move up and out of a nine month base.
___________
DISCLOSURE: I have no position in JMBA…yet.
very nice
Nice. Glad to see you posting more trading ideas again.
i can only hope there was a renaissance faire in the area.
Nice work on JMBA.
Very interesting. I will watch.
I am in
That is Casey Serin!!!!!!!!!!!!!!!!!!!
It would suck for the hedge funds that are accumulating in march and april because they would lose a cumulative 19.902% in the next 4 months 😛
They already dumped it to you by then, sucka!