20 'Bathwater Babies' and 3 'Dogs with Fleas' for the Week

At the end of each trading week, Hillbent scans the equity market for potential anomalies which exhibit extremely oversold and overbought conditions. Past observations have revealed that such candidates may experience reversal corrections to the upside or downside once the market reconfirms that their fundamentals remain solidly intact or relatively poor. From a contrarian perspective, these lists may also serve as a precursor to changes in institutional sentiment and underlying fundamentals.

(The purpose of this report is not to provide specific recommendations, but instead serve as a time-saving reference tool and starting point for investment ideas as the upcoming trading week unfolds. Of course, the results generated are not always perfect and users are strongly encouraged to perform their own due diligence on these names. Note that overbought and oversold conditions are based upon proprietary algorithms and quantitative models instead of conventional technical analysis indicators. As a supplement to this report, please refer to our Market Condition Summary to determine if market direction trends support a bullish or bearish investment bias over short-term, intermediate, and long-term timeframes.)

Stocks with Hillbent’s proprietary "A" (strongest) or "B" (next strongest) ranking in terms of positive fundamentals for revenue and earnings stability comprise what is better known as the "Weekly Babies With Bathwater" watchlist. (See results below.)

Weekly Babies With Bathwater (02-20-2009)

Stocks with Hillbent’s proprietary "E" (weakest) or "D" (next weakest) ranking in terms of negative fundamentals for revenue and earnings stability represent what is better known as the "Weekly Dogs With Fleas" watchlist. (See results below)

Weekly Dogs With Fleas (02-20-2009)

Disclosure: Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

Comments

[Anthony B:]

I've been following AFAM since last summer. It was one of the strongest stocks during last fall. Its recently been hammered since talks of reforming Medicaid. I still like it as a long term old people trend stock, might have to put some money down into it at these prices.

Mar 02 09:18 AM

[tc1:]

I, too, was following AFAM since November and actually put in some money on it in Dec. when it seemed like it was going to be one of those supposedly "recession-poof" healthcare-sector stocks, going upward and upward, especially given all the extremely positive continuing news on the company.

I should have done more research using the search terms "Almost Family short-sells" because when the stock began plummeting later in Dec and then really falling in Jan, and no bad news whatsoever was showing up at the "headlines" area of any mainstream coverage of the stock, i did just that worded Google search ("AFAM" "short-sells") and found out from BuyIns.net that AFAM was in Nov.-Dec. among the TOP SIX MOST SHORTED STOCKS out there-- with a large amount of illegal naked shorting hitting the stock.

Then, finally, a neg article on AFAM appeared in late Jan, indicating the possibility of a political move to lower Medicare/Medicaid reimbursements for home-care healthcare.

If either of these news items had been more prominent earlier, in Dec., i NEVER would have bought into AFAM.

Btw, these are the same reasons that some of the other healthcare companies like Amedisys and Gentiva have been hit so hard. (GTIV has 8% short-sells; while Amedisys now has "short" fully 54% of its floating shares-- and one can bet that surely much of this is naked shorting!! How can a company survive this pounding, so much of it illegal and criminal?)

Where is the SEC on this?

Mar 02 10:48 AM

[tc1:]

Btw, i sold out of AFAM on Jan 29, when the stock was at $31.52. It's now over $12 lower at $19.47 on Mar 2. This baby has been deliberately submerged and near-drowned by the short-sellers, long before any actual Medicare cuts.....

Mar 02 10:52 AM

[martyg:]

in this market everybody has their tale of woe. gxdx was about 33 or 34 and then came out with their earnings report and guidance. everything was up from 80% to 90% . guidance was ratcheted up for the next year and they have no money problems. per share estimates were blown away, 21cts analysts estimates were clocked in at 30cts. stock dropped about 10 points or 30%.

being facetious, i guess if they came in over 100% the stock would have collapsed another 4 or 6 points.

Mar 03 09:28 AM

[martyg:]

in this market everybody has their tale of woe. gxdx was about 33 or 34 and then came out with their earnings report and guidance. everything was up from 80% to 90% . guidance was ratcheted up for the next year and they have no money problems. per share estimates were blown away, 21cts analysts estimates were clocked in at 30cts. stock dropped about 10 points or 30%.

being facetious, i guess if they came in over 100% the stock would have collapsed another 4 or 6 points.

Mar 03 09:29 AM