14 'Babies with Bathwater' and 11 'Dogs with Fleas' Stocks 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 ETF Trends Report 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 (08-28-2009)

			Wkly	Wkly Vol	Avg 5D Vol	Hillbent
Company	Ticker	Price	% Chg	% Chg	% Chg	Grade
Bridgepoint Edu	BPI	$18.51	-13.30	45	9	A
Charming Shoppe	CHRS	$5.26	-7.88	20	41	B
Centennial Comm	CYCL	$7.57	-5.85	66	2	B
Flushing Finl	FFIC	$13.24	-5.02	168	55	B
Hill Intl Inc	HIL	$6.19	-9.24	19	22	B
Hsn Inc	HSNI	$10.74	-10.80	37	-34	B
I2 Technologies	ITWO	$14.78	-10.21	82	49	B
Open Text Corp	OTEX	$35.58	-7.18	46	95	B
Petrobras-Adr P	PBR.A	$34.45	-6.39	30	4	B
Polyone Corp	POL	$5.29	-6.37	39	5	B
Revlon Inc-A	REV	$4.65	-7.00	45	5	A
St Mary Ld&Expl	SM	$27.30	-5.60	25	5	B
Winn-Dixie Strs	WINN	$13.86	-11.04	69	37	A
Walter Energy	WLT	$54.80	-8.02	61	37	A

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 (08-28-2009)

			Wkly	Wkly Vol	Avg 5D Vol	Hillbent
Company	Ticker	Price	% Chg	% Chg	% Chg	Grade
Amer Dairy Inc	ADY	$31.85	6.17	-15.1	-22.7	E
Albany Intl A	AIN	$17.85	5.25	-8.5	3.6	D
Hibbet Sports	HIBB	$17.67	6.77	-50.6	33.9	E
Hospitality Prp	HPT	$18.84	5.02	-14.3	-22.3	E
Ing Groep-Adr	ING	$15.36	11.39	-28.3	23	D
Layne Christens	LAYN	$26.86	6.04	-5.3	-21.9	D
Mobile Mini Inc	MINI	$17.96	9.05	-7	-38.5	E
Elizabeth Arden	RDEN	$10.65	6.18	-54.7	-34.4	D
Rambus Inc	RMBS	$19.42	6.41	-22.9	4.5	D
Sunoco Inc	SUN	$27.41	5.22	-6.9	-9.6	D
Tal Intl Grp	TAL	$12.76	9.43	-28	-38.9	E

Comments

[herbert hoover:]

If you could only find 11 dogs with fleas in this market, your standards are too low

Aug 30 11:43 AM

[J Clinton Hill:]

hello herbert,

i appreciate your participation.

there are more names, but to obtain a complete list requires a premium subscription.

if there are any names you would like to add for the benefit of readers, please feel free to share them in your comments. i'm sure other readers would appreciate it.

take care & have a profitable trading week...


On Aug 30 11:43 AM herbert hoover wrote:

> If you could only find 11 dogs with fleas in this market, your standards
> are too low

Aug 30 12:53 PM

[Larry House:]

As a value investor, I am more inclined to search the dog group for a good buy. SUN strikes me as worthy of a close look.

Aug 30 01:30 PM

[Ricard:]

I am also a value investor and I find no value added in this article. This is a day trader's handbook.

No offense to the author. I'm sure the information is of quality to those who day trade.


On Aug 30 01:30 PM Larry House wrote:

> As a value investor, I am more inclined to search the dog group for
> a good buy. SUN strikes me as worthy of a close look.

Aug 30 03:55 PM

[J Clinton Hill:]

Ricard,

This is a weekly report and although I refrain from advising others how to use it, I feel compelled to intervene and caution readers that it would be ill advised to use this research tool for day trading. It was never intended for such.

The screen is based upon proprietary quants and used to filter overbought & oversold stocks by institutional investors.

All the best,

Hillbent..

On Aug 30 03:55 PM Ricard wrote:

> I am also a value investor and I find no value added in this article.
> This is a day trader's handbook.
>
> No offense to the author. I'm sure the information is of quality
> to those who day trade.

Aug 30 11:36 PM

[BSexposer:]

Centennial (CYCL) is a buyout candidate - AT&T is expected to close the purchase at $8.50 sometime in the 3rd Q.

Aug 31 10:24 AM