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margin_compression_severe on ZW Data Action Technologies Inc. (CNET)

SIC 7370 — Services-Computer Programming, Data Processing, Etc. · CIK 1376321 · default direction: short

Definition

Fires on >500 bps year-over-year decline in operating margin. Captures the 'good business getting worse' pattern.

Every time the signal fired on CNET

FYFiling dateEvent date1d5d20d60d252d
FY20202021-04-132021-04-13-9.09%-27.27%-28.93%-32.23%-74.79%
FY20182019-04-152019-04-15-33.33%-32.88%-35.16%-38.36%-66.67%
FY20172018-04-162018-04-16+27.53%+16.60%+21.05%-1.21%-40.89%
FY20142015-04-152015-04-15-9.25%-9.83%-4.05%-38.73%-62.43%
FY20122013-04-152013-04-15-6.67%+1.33%-10.67%-30.67%+113.33%

Forward returns are stock returns from event date (next trading day after filing). Sign is raw stock direction; the trade direction is in the calibration table below.

Universe-wide calibration (this signal across all companies)

Horizonn eventsGross stock retHit rateTrade dirNet PnLCost (bps)r/σ net
1d2,429+2.00%+36.27%short-2.03%46-0.02
5d2,429+3.35%+38.74%short-2.80%47-0.02
20d2,364+6.26%+38.32%short-4.81%52-0.03
60d2,266+78.74%+40.47%short-75.14%65-0.03
252d2,195+41.39%+39.77%short-31.94%126-0.09

Net PnL is direction × stock return − round-trip execution cost (5 bps half-spread + ADV-tiered borrow). See margin_compression_severe methodology for the full audit.


Data: /api/company/1376321/financials