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

At the end of each trading week, Hillbent scans for 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.)

1) 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 (03-06-2009)

2) 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 (03-06-2009)

Comments

[Conan the Barbarian]

Nice: I noticed that your A/B list included 2 of 6 in the oil sector. Do you have transistionary indicators which move selections from neutral (I assume there is a C list) to A/B VS D/E?

Also, what markets do you exclude? Bulletin Board, Pinks, etc.

I invest in a lot of ADRs which are only listed on the Pinks.

2009 Mar 16 11:33 PM

[J Clinton Hill]

hi paultaut,

due to time constraints, i can't reply to comments as often as i would like...

i do rate stocks "C" but these aren't included on the lists of either of these reports... i'm looking for strong companies that are oversold or weak companies that are overbought... essentially the philosophy is to run with the strong and attack the weak...

the model is based upon a combination of proprietary fundamental & technical indicators and probably not suited for short-term trading, but more for swing or position style trading...

i don't cover pink sheet stocks b/c i need to have liquidity as a money mgr and also i do some decision support research for prop traders & institutions and they also require liquidity...

as my blog is titled "the market direction", i'm just trying to point people in what i perceive to be the right direction...

hope this helps... appreciate your comments...


On Mar 16 11:33 PM paultaut wrote:

> Nice: I noticed that your A/B list included 2 of 6 in the oil sector.
> Do you have transistionary indicators which move selections from
> neutral (I assume there is a C list) to A/B VS D/E?
>
> Also, what markets do you exclude? Bulletin Board, Pinks, etc.<br/>
>
> I invest in a lot of ADRs which are only listed on the Pinks.

2009 Mar 17 01:15 AM