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Looking to avoid value traps? A historically low share price may seem attractive to an investor who hasn't done their research, but we can protect ourselves by taking cues from the actions of institutional investors, who are known for their in depth analysis. We ran a screen with this in mind.

In creating our screen we began by looking for stocks with troubling accounting signs. While there are many ways to go about this, we chose to look for names with falling current ratios.

The higher the current ratio, the more capable the company is in covering its liabilities. Naturally, a falling current ratio is troubling. We screened for stocks with current ratios that have consistently dropped over 3 12-month intervals and fallen below a ratio of 3.

Next we screened these names for those with bearish sentiment from institutional investors, with significant net institutional sales over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

The stocks listed below are signaling 2 bearish trends, but do you think these names will drop like smart money expects? Use this list as a starting point for your own analysis.

1. Bona Film Group Limited (NASDAQ:BONA): Distributes films in the People's Republic of China. Market cap at $310.08M, most recent closing price at $5.10. Net institutional sales in the current quarter at -1.1M shares, which represents about 38.06% of the company's float of 2.89M shares. Current ratio at 0.77.

2. Cia Energetica de Minas Gerais (NYSE:CIG): Engages in the generation, transformation, transmission, distribution, and sale of electric energy primarily in Minas Gerais, Brazil. Market cap at $10.44B, most recent closing price at $12.24. Net institutional sales in the current quarter at -34.3M shares, which represents about 6.43% of the company's float of 533.54M shares. Current ratio at 0.87.

3. Consolidated Communications Holdings Inc. (NASDAQ:CNSL): Provides telecommunications services to residential and business customers in Illinois, Texas, and Pennsylvania. Market cap at $600.4M, most recent closing price at $15.04. Net institutional sales in the current quarter at -6.6M shares, which represents about 17.65% of the company's float of 37.39M shares. Current ratio at 0.75.

4. Clayton Williams Energy Inc. (NYSE:CWEI): Engages in the exploration for and production of oil and natural gas primarily in Texas, Louisiana, and New Mexico. Market cap at $495.03M, most recent closing price at $40.71. Net institutional sales in the current quarter at -318.2K shares, which represents about 5.38% of the company's float of 5.91M shares. Current ratio at 0.98.

5. Endeavour International Corporation (NYSE:END): Engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and the United Kingdom. Market cap at $314.08M, most recent closing price at $6.74. Net institutional sales in the current quarter at -2.5M shares, which represents about 7.62% of the company's float of 32.80M shares. Current ratio at 0.99.

6. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Develops, leases, operates, franchises, and manages a chain of economy hotels in the People's Republic of China. Market cap at $1.22B, most recent closing price at $26.88. Net institutional sales in the current quarter at -2.0M shares, which represents about 6.32% of the company's float of 31.64M shares. Current ratio at 0.77.

7. Meredith Corp. (NYSE:MDP): Engages in magazine publishing and related brand licensing, television broadcasting, integrated marketing, interactive media, and video production businesses in the United States. Market cap at $1.39B, most recent closing price at $31.18. Net institutional sales in the current quarter at -4.3M shares, which represents about 14.14% of the company's float of 30.42M shares. Current ratio at 0.93.

8. Blue Nile Inc. (NASDAQ:NILE): Operates as an online retailer of diamonds and fine jewelry worldwide. Market cap at $491.75M, most recent closing price at $39.34. Net institutional sales in the current quarter at -2.6M shares, which represents about 21.12% of the company's float of 12.31M shares. Current ratio at 0.87.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 8 Illiquid Stocks With Increased Institutional Selling