Weekly 'Babies With Bathwater' Watchlist

At the end of each trading week, Hillbent scans the market for extremely oversold stocks with a proprietary "A" (strongest) or "B" (next strongest) ranking in terms of positive fundamentals, revenue and earnings stability. The generated results is better known as the "Weekly Babies With Bathwater" watchlist.

Past observations have revealed that such candidates may experience reversal corrections to the upside once the market reconfirms that their fundamentals remain solidly intact. (The purpose of this list is not to provide specific recommendations, but instead serve as a starting point for investment ideas as the upcoming trading week unfolds.)

Disclosures: None

Comments

[Big-P:]

The babies aren't being thrown out...they're being sucked down the drain on the back of this massive de-leveraging of hedge funds.

Please don't kid yourselves into thinking that your limited funds have ever or will ever move markets. People like me move markets NOT YOU!

Hedgies had huge leverage and that leverage drove stock prices higher. Now the hedgies no longer have that amount of leverage and at the same time they're dealing with redemptions which means the shrinking leverage problem is compounded by the fact that the shrinking leverage is levered against a shrinking fund.

Big-P

2008 Dec 16 03:21 AM