7 'Babies with Bathwater' and 16 '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 (10-16-2009)

Wkly Wkly Vol Avg 5D Vol Hillbent
Company Ticker Price % Chg % Chg % Chg Grade
Hutchinson Tech HTCH $6.85 -11.04 48.3 23.2 B
Micros Sys MCRS $27.88 -7.38 160.2 127.2 B
Mitsubishi-Ufj MTU $5.14 -9.19 45.9 117.5 B
Myers Inds MYE $9.71 -9.76 24.5 10.3 B
Omnivision Tech OVTI $14.26 -8 22.7 -15.7 B
Rodman&Ren Cap RODM $5.31 -11.35 60 -1.9 A
Zumiez Inc ZUMZ $15.12 -5.44 17.3 -2 B

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 (10-16-2009)

Wkly Wkly Vol Avg 5D Vol Hillbent
Company Ticker Price % Chg % Chg % Chg Grade
Royal Dtch Sh-B RDS.B 59.74 6.77 -19 -11 D
Syngenta Ag-Adr SYT 49.82 5.17 -27 2 D
Pearson Plc-Adr PSO 13.37 5.86 -13 37 D
Smith Intl SII 31.89 5.32 -7 -5 D
Childrens Place PLCE 35.83 5.85 -20 29 D
Riskmetrics Grp RMG 15.78 5.69 -68 -39 D
Hornbeck Offshr HOS 29.55 6.99 -19 -20 D
Healthways Inc HWAY 16.94 6.27 -12 30 D
Citi Trends Inc CTRN 29.97 9.18 -52 -58 D
Lithia Motors LAD 12.00 6.67 -60 38 D
Potash Sask POT 97.40 7.95 -13 -5 E
Helix Egy Solut HLX 16.22 8.64 -33 -26 E
Ameristar Casin ASCA 17.31 7.58 -13 -27 E
Cbeyond Inc CBEY 16.34 6.38 -31 -3 E
Merit Medical MMSI 16.77 5.34 -36 56 E
Cra Intl Inc CRAI 26.16 9.27 -27 11 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.