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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 of covering its liabilities. Naturally, a falling current ratio is troubling. We screened for stocks with current ratios that have consistently dropped over three 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 two bearish trends, but do you think these names will drop like short sellers and smart money expect? Use this list as a starting point for your own analysis.

1. AK Steel Holding Corporation (NYSE:AKS): Produces flat-rolled carbon, stainless, electrical steels, and tubular products primarily in the United States and internationally. Market cap at $615.4M, and most recent closing price at $4.64. Net institutional sales in the current quarter at -8.9M shares, which represents about 8.15% of the company's float of 109.14M shares. Current Ratios decreased from 2.73 to 2.2 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 2.2 to 1.66 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 1.66 to 1.12 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

The 2 top sellers of the stock are Barclays and Morgan Stanley.

2. PLX Technology Inc. (NASDAQ:PLXT): Designs, develops, manufactures, and sells integrated circuits. Market cap at $200.88M, most recent closing price at $4.46. Net institutional sales in the current quarter at -2.6M shares, which represents about 7.03% of the company's float of 37.00M shares. Current Ratios decreased from 7.1 to 5.57 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 5.57 to 2.11 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 2.11 to 2.09 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). The 2 top sellers of the stock are Alpine Associates, and Ameriprise Financial.

3. Simcere Pharmaceutical Group. (NYSE:SCR): Develops, manufactures, and markets branded generic and proprietary pharmaceuticals in China. Market cap at $421.12M, most recent closing price at $8.0. Net institutional sales in the current quarter at -3.9M shares, which represents about 28.26% of the company's float of 13.80M shares. Current Ratios decreased from 5.1 to 1.98 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 1.98 to 1.38 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 1.38 to 1.26 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). The 2 top sellers of the stock are Goldman Sachs, and JP Morgan Chase.

4. Stoneridge Inc. (NYSE:SRI): Engages in the design and manufacture of engineered electrical and electronic components, modules, and systems for the medium and heavy-duty truck, automotive, agricultural, and off-highway vehicle markets primarily in North America and Europe. Market cap at $163.33M, most recent closing price at $5.85. Net institutional sales in the current quarter at -1.2M shares, which represents about 5.09% of the company's float of 23.57M shares. Current Ratios decreased from 2.7 to 2.59 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 2.59 to 2.22 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 2.22 to 1.51 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). The 2 top sellers of the stock are ACK Asset Management, and TIG Advisors.

5. 3SBio Inc. (NASDAQ:SSRX): Engages in the research, development, manufacture, and distribution of pharmaceutical products in the People's Republic of China. Market cap at $294.55M, most recent closing price at $13.34. Net institutional sales in the current quarter at -984.7K shares, which represents about 7.28% of the company's float of 13.52M shares. Current Ratios decreased from 28.53 to 22.18 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 22.18 to 16.55 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 16.55 to 15.54 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). The 2 top sellers of the stock are Blackrock Advisors, and FMR, LLC.

6. MEMC Electronic Materials Inc. (WFR): Engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Market cap at $877.61M, most recent closing price at $3.80. Net institutional sales in the current quarter at -15.0M shares, which represents about 7.67% of the company's float of 195.47M shares. Current Ratios decreased from 3.08 to 2.45 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, Current Ratios decreased from 2.45 to 1.35 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, Current Ratios decreased from 1.35 to 1.31 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). The 2 top sellers of the stock are Thornburg Investment Management, and Luminus Management.

*Institutional data sourced from Fidelity

Source: Money Managers Are Selling These 6 Illiquid Stocks