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

by: J Clinton Hill

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 (10-02-2009)

Wkly Wkly Vol Avg 5D Vol Hillbent
Company Ticker Price % Chg % Chg % Chg Grade
China-Biotics OTC:CHBT $14.90 -10.02 338 386 A
Changyou.Com CYOU $32.54 -12.60 84 57 B
Fairchild Semi FCS $8.91 -13.41 26 44 A
Hrpt Pptys Trst HRP $6.73 -10.39 12 44 B
Intersil Corp ISIL $13.89 -8.86 46 30 B
Lithia Motors LAD $13.15 -15.71 13 -4 A
Lca-Vision Inc LCAV $5.96 -18.24 45 33 B
Methode Elect-A MEI $7.85 -9.04 27 -11 A
Movado Grp Inc MOV $12.72 -11.17 11 18 A
Natl Semicon NSM $13.21 -9.46 31 47 B
Omnivision Tech OVTI $14.63 -9.52 14 7 B
Panasonic Corp PC $13.78 -9.40 37 31 B
Royal Bk Sc-Adr RBS $14.91 -10.13 17 1 B
Rf Micro Device RFMD $4.65 -12.10 125 53 A
Gibraltar Indus ROCK $12.42 -9.41 28 -13 B
Shengdatech Inc OTC:SDTH $6.08 -10.59 12 -7 B
Switch&Data Fac SDXC $12.99 -8.26 97 13 B
Standard Micros SMSC $19.89 -13.90 181 110 B
Winn-Dixie Strs WINN $12.39 -14.79 153 130 A
Xerox Corp XRX $7.32 -18.85 1128 492 B
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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 (10-02-2009)

Wkly Wkly Vol Avg 5D Vol Hillbent
Company Ticker Price % Chg % Chg % Chg Grade
Aar Corp AIR $21.95 6.61 -30.1 31.5 E
Bruker Corp BRKR $10.48 9.17 -61.2 46.7 D
Facet Biotech FACT $17.75 6.93 -26.7 -16.3 D
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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.