20 'Babies with Bathwater' and 1 'Dog 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 (09-25-2009)

			Wkly	Wkly Vol	Avg 5D Vol	Hillbent
Company	Ticker	Price	% Chg	% Chg	% Chg	Grade
Modine Manufact	MOD	$7.55	-7.81	578	274	B
Phh Corp	PHH	$19.55	-8.99	396	240	B
Pennantpark Inv	PNNT	$8.10	-10.60	373	210	B
Imperial Sugar	IPSU	$13.35	-14.86	366	179	B
Amer Italian	AIPC	$28.00	-6.48	135	109	B
Hanger Orthoped	HGR	$14.12	-5.55	246	92	B
Jds Uniphase Cp	JDSU	$7.01	-7.03	123	77	B
Amer Supercon	AMSC	$30.44	-18.15	104	75	B
Inverness Medcl	IMA	$37.37	-6.58	50	55	B
Bed Bath&Beyond	BBBY	$36.80	-6.31	49	55	B
Cts Corp	CTS	$9.74	-5.35	40	45	B
Corrections Crp	CXW	$21.14	-6.54	43	42	B
Covance Inc	CVD	$54.02	-5.82	134	39	B
Huaneng Power	HNP	$26.66	-9.78	76	36	B
Vanceinfo Tech	VIT	$16.19	-10.85	17	31	B
Hutchinson Tech	HTCH	$7.05	-12.96	49	26	B
Christopher&Bnk	CBK	$7.51	-5.54	24	23	B
Corinthian Col	COCO	$17.75	-5.54	61	91	A
Amer Movil-Adr	AMX	$42.25	-7.04	36	39	A
Diodes Inc	DIOD	$18.68	-8.83	27	24	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 (09-25-2009)

			Wkly	Wkly Vol	Avg 5D Vol	Hillbent
Company	Ticker	Price	% Chg	% Chg	% Chg	Grade
Huron Conslt Gp	HURN	$24.00	6.43	-48	-69	E

Disclosures: 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

[DroolingElmo:]

Be careful with this advice. I bought 1000 shares of Huron Consulting on 8/17 for 12.80 a share and sold 800 of them on 9/22 for 22.68. $10 a share in about 30 day. Doesn't sound like a E investment to me.

Sep 29 11:37 AM

[optionsgirl:]

Sometimes "E" investments pay off really well. That's why the old saw about buying when the blood is in the streets remains true today. However, a change in fundamentals can easily occur in 4 weeks. I don't think Clinton's list creates any conflict.

Oct 01 12:02 AM

[J Clinton Hill:]

OG:

it's nice to see that someone gets it... i state in the preface to my report: ...From a contrarian perspective, these lists may also serve as a precursor to changes in institutional sentiment and underlying fundamentals....

i try to refrain from giving specific instructions on how to use this list... btw, it is a very useful tool for options players like yourself and this segment of investors has taken a keen interest in the report...

anyway, best wishes & nice to hear from you...


On Oct 01 12:02 AM optionsgirl wrote:

> Sometimes "E" investments pay off really well. That's why the old
> saw about buying when the blood is in the streets remains true today.
> However, a change in fundamentals can easily occur in 4 weeks. I
> don't think Clinton's list creates any conflict.

Oct 01 10:19 AM

[optionsgirl:]

I love your lists and the fact that you share for free some of the information that people pay you for in your professional life. So, thanks again, too. In fact, this new list has some companies I have never read about before. Very frankly, your stock screeners are a lot more sophisticated than the stuff I use!
We obviously have a mutual admiration society going on here!


On Oct 01 10:19 AM J Clinton Hill wrote:

> OG:
>
> it's nice to see that someone gets it... i state in the preface to
> my report: ...From a contrarian perspective, these lists may also
> serve as a precursor to changes in institutional sentiment and underlying
> fundamentals....
>
> i try to refrain from giving specific instructions on how to use
> this list... btw, it is a very useful tool for options players like
> yourself and this segment of investors has taken a keen interest
> in the report...
>
> anyway, best wishes & nice to hear from you...

Oct 01 11:51 AM