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The following is a list is of nine stocks that have recently seen the 50-day simple moving average (SMA50) cross below the 200-day simple moving average (SMA200), usually a sign of bearish sentiment. Additionally, all of these stocks have higher levels of debt when comparing the following metrics to their competitors:

  • Trailing Twelve Months Long Term Debt to Equity
  • Trailing Twelve Months Total Debt to Assets
  • Trailing Twelve Months Total Debt to Equity

If you're looking for short ideas, this list might offer an intereting starting point.

Valuation data and industry comps sourced from Fidelity, short float and performance data sourced from Finviz.

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 difference between SMA50 and SMA200.

1. Pike Electric Corporation (NYSE:PIKE): General Contractors Industry. Market cap of $314.83M. SMA50 at $8.38 vs. SMA200 at $8.50 (current price at $9.32).

TTM Long Term Debt/Equity 46.58% vs. industry average at 15.43%. TTM Total Debt/Assets 22.97% vs. industry average at 8.28%. TTM Total Debt/Equity 46.58% vs. industry average at 23.34%. Current ratio at 2.06 vs. industry average at 1.78.

Short float at 2.05%, which implies a short ratio of 7.59 days. The stock has gained 13.3% over the last year.

Recent Developments: Announced that they have been awarded two major new energy contracts under the Millennium Challenge Compact (NYSE:MCC) (Sept. 2010).

2. Orthofix International NV (NASDAQ:OFIX): Medical Appliances & Equipment Industry. Market cap of $513.11M. SMA50 at $29.06 vs. SMA200 at $29.91 (current price at $28.97).

TTM Long Term Debt/Equity 85.8% vs. industry average at 27.27%. TTM Total Debt/Assets 39.87% vs. industry average at 21.38%. TTM Total Debt/Equity 88.11% vs. industry average at 34.35%. Current ratio at 3.67 vs. industry average at 3.19.

Short float at 3.1%, which implies a short ratio of 4.52 days. The stock has lost -6.74% over the last year.

Recent Developments: The Company promoted Robert S. Vaters to the position of Executive Vice President and Chief Operating Officer. Mr. Vaters had previously served as the Company's Executive Vice President and Chief Financial Officer (Jan. 2011).

3. Affymetrix Inc. (NASDAQ:AFFX): Scientific & Technical Instruments Industry. Market cap of $381.46M. SMA50 at $4.93 vs. SMA200 at $5.03 (current price at $5.4).

TTM Long Term Debt/Equity 61.68% vs. industry average at 33.21%. TTM Total Debt/Assets 32.91% vs. industry average at 21.18%. TTM Total Debt/Equity 61.68% vs. industry average at 47.35%. Current ratio at 5.57 vs. industry average at 2.73.

Short float at 14.77%, which implies a short ratio of 13.86 days. The stock has lost -29.04% over the last year.

Recent Developments: The company issued Q4 2010 revenue guidance in line with analysts' estimates (Jan. 2011).

4. Hillenbrand, Inc. (NYSE:HI): Personal Services Industry. Market cap of $1.38B. SMA50 at $21.14 vs. SMA200 at $21.21 (current price at $21.86).

TTM Long Term Debt/Equity 81.76% vs. industry average at 33.26%. TTM Total Debt/Assets 32.84% vs. industry average at 22.45%. TTM Total Debt/Equity 84.71% vs. industry average at 37.92%. Current ratio at 2.41 vs. industry average at 1.67.

Short float at 2.78%, which implies a short ratio of 6.11 days. The stock has gained 18.26% over the last year.

Recent Developments: Hillenbrand, Inc. reaffirmed its fiscal 2011 guidance and expects revenue to be in the range of $855-$875 million (Feb. 2011). The company increased quarterly dividend to $0.19 per share (Dec. 2010).

5. Pantry Inc. (NASDAQ:PTRY): Grocery Stores Industry. Market cap of $357.86M. SMA50 at $18.22 vs. SMA200 at $18.33 (current price at $15.44).

TTM Long Term Debt/Equity 409.98% vs. industry average at 44.48%. TTM Total Debt/Assets 64.19% vs. industry average at 20.78%. TTM Total Debt/Equity 414.31% vs. industry average at 52.91%. Current ratio at 1.62 vs. industry average at 1.13.

Short float at 2.94%, which implies a short ratio of 3.48 days. The stock has gained 16.16% over the last year.

Recent Developments: The Pantry, Inc. announced that it has completed the previously disclosed acquisition of 47 convenience stores from Presto Convenience Stores, LLC.(Dec. 2010).

6. Central European Distribution Corp. (NASDAQ:CEDC): Wineries & Distillers Industry. Market cap of $1.52B. SMA50 at $24.02 vs. SMA200 at $24.65 (current price at $21.83).

TTM Long Term Debt/Equity 73.42% vs. industry average at 56.96%. TTM Total Debt/Assets 38.07% vs. industry average at 28.24%. TTM Total Debt/Equity 86.46% vs. industry average at 79.66%. Current ratio at 1.44 vs. industry average at 1.34.

Short float at 2.7%, which implies a short ratio of 2.35 days. The stock has lost -35.28% over the last year.

Recent Developments: The company lowered fiscal 2010 guidance (Nov. 2010).

7. Dr Pepper Snapple Group, Inc. (NYSE:DPS): Soft Drinks Industry. Market cap of $7.66B. SMA50 at $35.82 vs. SMA200 at $36.22 (current price at $33.85).

TTM Long Term Debt/Equity 91.49% vs. industry average at 56.96%. TTM Total Debt/Assets 29.94% vs. industry average at 28.24%. TTM Total Debt/Equity 91.59% vs. industry average at 79.66%. Current ratio at 1.57 vs. industry average at 1.34.

Short float at 1.92%, which implies a short ratio of 2.33 days. The stock has gained 25.95% over the last year.

Recent Developments: Dr Pepper Snapple Group Inc. sold $500 million of senior unsecured notes (Jan. 2011).The company issued FY 2010 guidance in line with analysts' estimates (Oct. 2010).

8. Valassis Communications Inc. (NYSE:VCI): Marketing Services Industry. Market cap of $1.61B. SMA50 at $32.10 vs. SMA200 at $33.05 (current price at $32.17).

TTM Long Term Debt/Equity 235.12% vs. industry average at 140.13%. TTM Total Debt/Assets 45.83% vs. industry average at 34.08%. TTM Total Debt/Equity 237.01% vs. industry average at 146.2%. Current ratio at 1.52 vs. industry average at 1.35.

Short float at 11.05%, which implies a short ratio of 9.15 days. The stock has gained 25.59% over the last year.

Recent Developments: The company issued FY 2011 guidance, with EPS below analysts' estimates (Dec. 2010).

9. Alliance One International, Inc. (NYSE:AOI): Tobacco Products Industry. Market cap of $315.23M. SMA50 at $4.02 vs. SMA200 at $4.02 (current price at $3.65).

TTM Long Term Debt/Equity 188.38% vs. industry average at 140.14%. TTM Total Debt/Assets 56.1% vs. industry average at 42.71%. TTM Total Debt/Equity 277.59% vs. industry average at 171.95%. Current ratio at 2.13 vs. industry average at 1.16.

Short float at 9.53%, which implies a short ratio of 12.12 days. The stock has lost -25.21% over the last year.

Recent Developments: Alliance One International, Inc. apnnounced processing agreement with JTI in Brazil (Dec. 2010). The company named Mark W. Kehaya Chairman and interim Chief Executive Officer, and has promoted J. Pieter Sikkel to President (Dec. 2010).

Source: Short Ideas: 9 High Debt Stocks With Bearish SMA50/SMA200 Crossovers