The following three stocks recently saw their 50-day moving average move below their 200-day moving average - a technical indicator known as the “Death Cross” - which usually signals a sentiment shift from bulls to bears.
Additionally, all of these stocks have seen a sharp rise in their Put/Call ratios over the last two weeks (i.e. a rising number of put contracts relative to call contracts).
If you're a contrarian, this excessive pessimism might raise a flag. Full details below.
Options data sourced from Schaeffer's, short float and performance data sourced from Finviz, recent developments from Reuters. (Please note: All changes in the Put/Call ratio occur between 2/3 - 2/16.)
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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. (Note: Data sourced on Wednesday afternoon, Feb 16.)
1. Northwest Natural Gas Company (NWN):
Gas Utilities Industry. Market cap of $1.22B.
Moving Average Data: SMA50 at $45.51 vs. SMA200 at $45.70 (current price at $46.03).
Options Data: Put/Call ratio increased from 2.31 to 3.39 (+46.75% change).
Other Sentiment Data: Short float at 5.58%, which implies a short ratio of 8.52 days. The stock has gained 8.99% over the last year.
2. Yongye International, Inc. (YONG):
Agricultural Chemicals Industry. Market cap of $336.21M.
Moving Average Data: SMA50 at $7.65 vs. SMA200 at $7.71 (current price at $6.82).
Options Data: Put/Call ratio increased from 0.95 to 1.11 (+16.84% change).
Other Sentiment Data: Short float at 15.36%, which implies a short ratio of 7.86 days. The stock has lost -14.34% over the last year.
Recent Developments: Announced the company expects to achieve a 50% annual growth rate in revenue for FY 2011 and 2012 (Jan. 2011).
3. Eldorado Gold Corp. (EGO):
Gold Industry. Market cap of $9.17B.
Moving Average Data: SMA50 at $17.35 vs. SMA200 at $17.52 (current price at $16.78).
Options Data: Put/Call ratio increased from 0.65 to 0.71 (+9.23% change).
Other Sentiment Data: Short float at 0.4%, which implies a short ratio of 0.57 days. The stock has gained 28.32% over the last year.
Recent Developments: Announced the company expects that gold production will increase 15% to 20% for FY2011 (Jan. 2011).