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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 mentioned below have RSI(14) levels below 35, which usually signals oversold conditions.

Additionally, all of these companies have high trailing twelve month (TTM) levered free cash flows as a percentage of market cap.

Levered free cash flow is the free cash flow available to the company after paying interest on said company's debt. It is a measure of the cash flow that is truly available to the company.

Considering the large amounts of cash held by these companies relative to market cap, do you think these names are undervalued? Or is this a list of falling knives? Full details below.

Levered FCF sourced from Yahoo Finance, short float and performance data sourced from Finviz.



List sorted by TTM levered FCF as a percentage of market cap.

1. Eastman Kodak Co. (EK): Photographic Equipment & Supplies Industry. Market cap of $970.66M. RS1(14) at 28.62. Levered FCF is 42.81% of market cap (TTM Levered FCF at $415.50M). Short float at 17.06%, which implies a short ratio of 4.27 days. The stock has lost -35.54% over the last year.

2. Orbitz Worldwide, Inc. (NYSE:OWW): General Entertainment Industry. Market cap of $377.52M. RS1(14) at 22.48. Levered FCF is 20.25% of market cap (TTM Levered FCF at $76.44M). Short float at 1.89%, which implies a short ratio of 5.81 days. The stock has lost -39.01% over the last year.

3. Qwest Communications International Inc. (NYSE:Q): Telecom Services Industry. Market cap of $11.86B. RS1(14) at 29.44. Levered FCF is 15.68% of market cap (TTM Levered FCF at $1.86B). Short float at 0.67%, which implies a short ratio of 0.48 days. The stock has gained 58.87% over the last year.

4. Enersis S.A. (NYSE:ENI):
Foreign Utilities Industry. Market cap of $12.79B. RS1(14) at 26.28. Levered FCF is 15.63% of market cap (TTM Levered FCF at $2.00B). Short float at 0.24%, which implies a short ratio of 0.99 days. The stock has lost -5.68% over the last year.

5. Cephalon Inc. (NASDAQ:CEPH):
Biotechnology Industry. Market cap of $4.32B. RS1(14) at 30.78. Levered FCF is 15.54% of market cap (TTM Levered FCF at $670.61M). Short float at 17.92%, which implies a short ratio of 10.15 days. The stock has lost -15.89% over the last year.

6. Enzon Pharmaceuticals Inc. (NASDAQ:ENZN): Biotechnology Industry. Market cap of $650.08M. RS1(14) at 32.06. Levered FCF is 12.21% of market cap (TTM Levered FCF at $79.36M). Short float at 11.21%, which implies a short ratio of 14.95 days. The stock has gained 17.12% over the last year.

7. Target Corp. (NYSE:TGT): Discount, Variety Stores Industry. Market cap of $36.16B. RS1(14) at 24.01. Levered FCF is 12.14% of market cap (TTM Levered FCF at $4.39B). Short float at 1.04%, which implies a short ratio of 1.13 days. The stock has gained 3.78% over the last year.

8. Federal-Mogul Corp. (NASDAQ:FDML): Auto Parts Industry. Market cap of $1.95B. RS1(14) at 27.54. Levered FCF is 11.54% of market cap (TTM Levered FCF at $224.52M). Short float at 0.95%, which implies a short ratio of 7.85 days. The stock has gained 22.10% over the last year.

9. Windstream Corporation (NASDAQ:WIN): Telecom Services Industry. Market cap of $5.93B. RS1(14) at 27. Levered FCF is 11.30% of market cap (TTM Levered FCF at $669.34M). Short float at 3.23%, which implies a short ratio of 3.18 days. The stock has gained 31.30% over the last year.

10. CenturyLink, Inc. (NYSE:CTL):
Telecom Services Industry. Market cap of $12.34B. RS1(14) at 28.87. Levered FCF is 11.10% of market cap (TTM Levered FCF at $1.37B). Short float at 9.16%, which implies a short ratio of 6.58 days. The stock has gained 27.71% over the last year.

11. Tekelec (NASDAQ:TKLC): Processing Systems & Products Industry. Market cap of $536.37M. RS1(14) at 21.2. Levered FCF is 10.33% of market cap (TTM Levered FCF at $55.42M). Short float at 4.06%, which implies a short ratio of 2.24 days. The stock has lost -53.12% over the last year.

12. CTC Media, Inc (NASDAQ:CTCM): TV Industry. Market cap of $3.31B. RS1(14) at 29.25. Levered FCF is 9.86% of market cap (TTM Levered FCF at $325.97M). Short float at 1.92%, which implies a short ratio of 4.07 days. The stock has gained 50.50% over the last year.

13. Sonic Corp. (NASDAQ:SONC):
Restaurants Industry. Market cap of $555.99M. RS1(14) at 30.02. Levered FCF is 9.46% of market cap (TTM Levered FCF at $52.59M). Short float at 7.29%, which implies a short ratio of 5.17 days. The stock has gained 7.38% over the last year.

14. Homex Development Corp. (NYSE:HXM): Property Management Industry. Market cap of $1.56B. RS1(14) at 24.39. Levered FCF is 9.33% of market cap (TTM Levered FCF at $145.87M). Short float at 4.53%, which implies a short ratio of 10.63 days. The stock has lost -2.38% over the last year.

15. Expedia Inc. (NASDAQ:EXPE):
Lodging Industry. Market cap of $5.58B. RS1(14) at 22.13. Levered FCF is 9.27% of market cap (TTM Levered FCF at $517.29M). Short float at 9.01%, which implies a short ratio of 3.17 days. The stock has lost -8.37% 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: 15 Cash-Rich, Oversold Companies for Your Watchlist