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The following is a list of oversold stocks, as defined by the Relative Strength, or RSI(14), indicator. All of the stocks in this list have RSI(14) readings below 40, which usually signal oversold conditions.

In addition, all of these stocks have a large number of open put option contracts relative to call option contracts (i.e. bearish stock market sentiment). All of the stocks in our list have Put/Call ratios above 1.3.

We last wrote about this screen on October 27, 2010. On that day, the screen produced 15 companies. Since then, 9 out of 15 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 60.00%). The screen averaged a return of 7.14% vs. an index return of 4.91%. Click here to access a full breakdown of the screen's past performance.

RSI(14) values sourced from Finviz, options data sourced from Schaeffer's.

Interactive Chart: Press Play to compare market caps for the top five stocks mentioned below. Note: The numbers on top of the items represent the forward P/E ratio.


The list has been sorted by the Put/Call ratio.

1. Equity One Inc. (NYSE:EQY):
REIT. Market cap of $1.58B. RSI(14) at 35.84. Call open interest at 404 contracts vs. put open interest at 3,591 contracts (Put/Call ratio at 8.89). Short float at 14.58%, which implies a short ratio of 11.51. The stock has gained 5.94% over the last year.

2. National Retail Properties, Inc. (NYSE:NNN): REIT. Market cap of $2.16B. RSI(14) at 37.46. Call open interest at 78 contracts vs. put open interest at 387 contracts (Put/Call ratio at 4.96). Short float at 9.43%, which implies a short ratio of 8.69. The stock has gained 30.3% over the last year.

3. Central European Media Enterprises Ltd. (NASDAQ:CETV): Broadcasting Industry. Market cap of $1.29B. RSI(14) at 35.11. Call open interest at 1,154 contracts vs. put open interest at 5,600 contracts (Put/Call ratio at 4.85). Short float at 5.67%, which implies a short ratio of 8.78. The stock has lost -21.48% over the last year.

4. Universal American Corp (NYSE:UAM): Health Care Plans Industry. Market cap of $1.16B. RSI(14) at 37.77. Call open interest at 155 contracts vs. put open interest at 659 contracts (Put/Call ratio at 4.25). Short float at 3.66%, which implies a short ratio of 5.58. The stock has gained 37.88% over the last year.

5. Entergy Corporation (NYSE:ETR): Electric Utilities Industry. Market cap of $12.79B. RSI(14) at 37.44. Call open interest at 8,550 contracts vs. put open interest at 26,815 contracts (Put/Call ratio at 3.14). Short float at 1.19%, which implies a short ratio of 1.26. The stock has lost -11.92% over the last year.

6. Boardwalk Pipeline Partners, LP (NYSE:BWP):
Oil & Gas Pipelines Industry. Market cap of $5.91B. RSI(14) at 30.58. Call open interest at 519 contracts vs. put open interest at 1,445 contracts (Put/Call ratio at 2.78). Short float at 0.29%, which implies a short ratio of 1.72. The stock has gained 11.56% over the last year.

7. San Juan Basin Royalty Trust (NYSE:SJT): Diversified Investments Industry. Market cap of $1.13B. RSI(14) at 39.83. Call open interest at 2,878 contracts vs. put open interest at 8,006 contracts (Put/Call ratio at 2.78). Short float at 2.02%, which implies a short ratio of 6. The stock has gained 48.83% over the last year.

8. Taubman Centers Inc. (NYSE:TCO): REIT. Market cap of $2.6B. RSI(14) at 35.76. Call open interest at 1,052 contracts vs. put open interest at 2,700 contracts (Put/Call ratio at 2.57). Short float at 7.69%, which implies a short ratio of 5.92. The stock has gained 36.48% over the last year.

9. Chesapeake Midstream Partners, L.P. (CHKM):
Oil & Gas Refining & Marketing Industry. Market cap of $1.87B. RSI(14) at 37.29. Call open interest at 77 contracts vs. put open interest at 171 contracts (Put/Call ratio at 2.22). Short float at 0.1%, which implies a short ratio of 0.62.

10. Banco Bradesco S.A. (NYSE:BBD):
Foreign Regional Bank. Market cap of $70.67B. RSI(14) at 38.62. Call open interest at 37,521 contracts vs. put open interest at 80,237 contracts (Put/Call ratio at 2.14). Short float at 0.93%, which implies a short ratio of 2.22. The stock has lost -10.24% over the last year.

11. Central European Distribution Corp. (NASDAQ:CEDC):
Wineries & Distillers Industry. Market cap of $1.72B. RSI(14) at 37.97. Call open interest at 2,357 contracts vs. put open interest at 4,349 contracts (Put/Call ratio at 1.85). Short float at 3.35%, which implies a short ratio of 2.86. The stock has lost -11.39% over the last year.

12. Taleo Corp. (NASDAQ:TLEO): Application Software Industry. Market cap of $1.2B. RSI(14) at 35.75. Call open interest at 192 contracts vs. put open interest at 338 contracts (Put/Call ratio at 1.76). Short float at 4.48%, which implies a short ratio of 5.15. The stock has gained 44.3% over the last year.

13. ICICI Bank Ltd. (NYSE:IBN): Foreign Regional Bank. Market cap of $28.11B. RSI(14) at 39.44. Call open interest at 38,989 contracts vs. put open interest at 65,139 contracts (Put/Call ratio at 1.67). Short float at 1.55%, which implies a short ratio of 1.61. The stock has gained 35.99% over the last year.

14. Big Lots Inc. (NYSE:BIG): Discount, Variety Stores Industry. Market cap of $2.11B. RSI(14) at 33.04. Call open interest at 14,955 contracts vs. put open interest at 24,694 contracts (Put/Call ratio at 1.65). Short float at 8.81%, which implies a short ratio of 3.73. The stock has lost -3.73% over the last year.

15. Simon Property Group Inc. (NYSE:SPG): REIT. Market cap of $28.61B. RSI(14) at 37.8. Call open interest at 30,772 contracts vs. put open interest at 50,571 contracts (Put/Call ratio at 1.64). Short float at 3.78%, which implies a short ratio of 5.31. The stock has gained 29.26% over the last year.

16. AGL Resources Inc. (AGL):
Gas Utilities Industry. Market cap of $2.79B. RSI(14) at 34.51. Call open interest at 212 contracts vs. put open interest at 348 contracts (Put/Call ratio at 1.64). Short float at 0.87%, which implies a short ratio of 1.61. The stock has gained 1.3% over the last year.

17. China Life Insurance Co. Ltd. (NYSE:LFC): Life Insurance Industry. Market cap of $119.8B. RSI(14) at 35.39. Call open interest at 33,038 contracts vs. put open interest at 50,576 contracts (Put/Call ratio at 1.53). Short float at 0.27%, which implies a short ratio of 2.43. The stock has lost -15.51% over the last year.

18. Enterprise Products Partners LP (NYSE:EPD):
Independent Oil & Gas Industry. Market cap of $34.85B. RSI(14) at 30.06. Call open interest at 10,507 contracts vs. put open interest at 15,530 contracts (Put/Call ratio at 1.48). Short float at 0.47%, which implies a short ratio of 2.19. The stock has gained 39.5% over the last year.

19. Barclays PLC (NYSE:BCS): Foreign Money Center Banks Industry. Market cap of $51.6B. RSI(14) at 39.06. Call open interest at 34,378 contracts vs. put open interest at 50,489 contracts (Put/Call ratio at 1.47). Short float at 0.14%, which implies a short ratio of 1.33. The stock has lost -9.08% over the last year.

20. Rogers Communications Inc. (NYSE:RCI): Wireless Communications Industry. Market cap of $19.35B. RSI(14) at 31.76. Call open interest at 453 contracts vs. put open interest at 626 contracts (Put/Call ratio at 1.38). Short float at 3.85%, which implies a short ratio of 50.29. The stock has gained 23.73% over the last year.

21. Logitech International SA (NASDAQ:LOGI): Computer Peripherals Industry. Market cap of $3.44B. RSI(14) at 38.56. Call open interest at 10,169 contracts vs. put open interest at 13,698 contracts (Put/Call ratio at 1.35). Short float at 16.29%, which implies a short ratio of 14.6. The stock has gained 18.57% over the last year.

22. Hospitality Properties Trust (NYSE:HPT): REIT. Market cap of $2.72B. RSI(14) at 38.2. Call open interest at 4,090 contracts vs. put open interest at 5,445 contracts (Put/Call ratio at 1.33). Short float at 2.54%, which implies a short ratio of 3.39. The stock has gained 7.95% over the last year.

23. Clearwire Corporation (CLWR): Wireless Communications Industry. Market cap of $5.62B. RSI(14) at 29.71. Call open interest at 19,450 contracts vs. put open interest at 25,692 contracts (Put/Call ratio at 1.32). Short float at 14.09%, which implies a short ratio of 7.36. The stock has lost -12.17% over the last year.

24. Banco Itau Holding Financeira S.A. (NYSE:ITUB): Foreign Money Center Banks Industry. Market cap of $104.85B. RSI(14) at 36.16. Call open interest at 66,247 contracts vs. put open interest at 86,624 contracts (Put/Call ratio at 1.31). Short float at 0.49%, which implies a short ratio of 1.17. The stock has gained 1.76% over the last year.

25. Perfect World Co., Ltd. (NASDAQ:PWRD):
Application Software Industry. Market cap of $1.17B. RSI(14) at 26.81. Call open interest at 13,497 contracts vs. put open interest at 17,541 contracts (Put/Call ratio at 1.3). Short float at 3.51%, which implies a short ratio of 2.03. The stock has lost -45.71% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Contrarian Ideas: Oversold Stocks With Bearish Options Sentiment