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The following is a list of materials stocks that have seen a recent increase in the Put/Call ratio, which is based on open interest of option contracts.

In addition, the Put/Call ratios of these companies are at the upper end of their annual ranges.

With the number of put option contracts growing so rapidly relative to call option contracts, do you think these stocks are set for a correction? Full details below.

Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/10 - 1/24)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the change in the Put/Call ratio. A reminder: All changes in the Put/Call ratio occur between 1/10 - 1/24. We'll also include a brief discussion on recent developments for each company.

1. Venoco, Inc. (NYSE:VQ): Oil & Gas Drilling & Exploration Industry. Market cap of $1.11B. Current Put/Call ratio at 4.23 vs. previous Put/Call ratio at 0.8 (428.75% change). Short float at 5.86%, which implies a short ratio of 3.77 days. The stock has gained 76.24% over the last year.

- Recent Developments: Reaffirmed FY 2010 production guidance, continues to expects production to be 18,600 BOE/d (Nov 2010). Note that the company reduced production guidance in October 2010.

2. Sensient Technologies Corporation (NYSE:SXT): Specialty Chemicals Industry. Market cap of $1.75B. Current Put/Call ratio at 2.5 vs. previous Put/Call ratio at 0.64 (290.63% change). Short float at 3.81%, which implies a short ratio of 7.05 days. The stock has gained 33.17% over the last year.

- Recent Developments: Declared a regular quarterly cash dividend on its common stock of $0.21 per share, an increase of $0.01 per share per quarter (Jan 2011). Raised fiscal 2010 earnings guidance (Oct 2010).

3. Abraxas Petroleum Corp. (NASDAQ:AXAS): Independent Oil & Gas Industry. Market cap of $322.37M. Current Put/Call ratio at 0.66 vs. previous Put/Call ratio at 0.17 (288.24% change). Short float at 6.81%, which implies a short ratio of 7.19 days. The stock has gained 101.91% over the last year.

- Recent Developments: Announced that it intends to offer 10,000,000 shares of common stock in an underwritten offering (Jan 2011). Lowered FY 2010 revenue and production guidance (Nov 2010)

4. Petroleum Development Corporation (PETD): Independent Oil & Gas Industry. Market cap of $776.39M. Current Put/Call ratio at 0.71 vs. previous Put/Call ratio at 0.2 (255.0% change). Short float at 10.18%, which implies a short ratio of 5.38 days. The stock has gained 107.79% over the last year.

- Recent Developments: PDC purchased partnerships from 2004 for an aggregate amount of $36.5 million (Dec 2010). Announced that they remain on track with their earnings guidance for fiscal 2010 (Nov 2010).

5. Georgia Gulf Corp. (GGC): Synthetics Industry. Market cap of $860.55M. Current Put/Call ratio at 1.64 vs. previous Put/Call ratio at 0.55 (198.18% change). Short float at 5.45%, which implies a short ratio of 4.38 days. The stock has gained 64.12% over the last year.

- Recent Developments: Raised FY 2010 EBITDA guidance (Nov 2010).

6. Rosetta Resources, Inc. (NASDAQ:ROSE): Independent Oil & Gas Industry. Market cap of $1.83B. Current Put/Call ratio at 1.18 vs. previous Put/Call ratio at 0.44 (168.18% change). Short float at 7.44%, which implies a short ratio of 5.42 days. The stock has gained 66.65% over the last year.

- Recent Developments: Raised FY 2010 production guidance (Nov 2010).

7. Harvest Natural Resources Inc. (NYSE:HNR): Independent Oil & Gas Industry. Market cap of $362.76M. Current Put/Call ratio at 0.41 vs. previous Put/Call ratio at 0.16 (156.25% change). Short float at 7.29%, which implies a short ratio of 6.99 days. The stock has gained 108.16% over the last year.

- Recent Developments: Announced the closing of a $60.0 million term loan facility (Oct 2010).

8. Newpark Resources Inc. (NYSE:NR): Oil & Gas Equipment & Services Industry. Market cap of $510.14M. Current Put/Call ratio at 1.94 vs. previous Put/Call ratio at 0.78 (148.72% change). Short float at 6.56%, which implies a short ratio of 3.33 days. The stock has gained 36.23% over the last year.

- Recent Developments: None

9. Hercules Offshore, Inc. (NASDAQ:HERO): Oil & Gas Drilling & Exploration Industry. Market cap of $359.26M. Current Put/Call ratio at 1.84 vs. previous Put/Call ratio at 0.8 (130.0% change). Short float at 6.94%, which implies a short ratio of 2.68 days. The stock has lost -34.66% over the last year.

- Recent Developments: Announced that it has appointed Stephen M. Butz, currently serving as Vice President, Finance and Treasurer, as Senior Vice President, Chief Financial Officer (NASDAQ:CFO) and Treasurer (May 2010).

10. SM Energy Company (NYSE:SM): Independent Oil & Gas Industry. Market cap of $3.53B. Current Put/Call ratio at 0.77 vs. previous Put/Call ratio at 0.37 (108.11% change). Short float at 5.83%, which implies a short ratio of 4.48 days. The stock has gained 55.22% over the last year.

- Recent Developments: Raised Q4 and FY 2010 production guidance (Nov 2010).

Source: 10 Materials Stocks With Rapidly Rising Put/Call Ratios