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It's often suggested that “volume precedes price”, and for that reason it's always helpful to look at the Money Flow Index (MFI), which is essentially a volume-weighted version of the popular Relative Strength indicator (RSI).

MFI is a more rigid indicator because it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a stock. It compares "positive money flow" to "negative money flow" to create an indicator that can be compared to price in order to identify the strength or weakness of a trend.

It can be very useful to compare changes in the MFI indicator to the changes in a stock's price, since diverging patterns are often interpreted as trend reversals. All of the stocks mentioned below have seen prices decline over the last week, but the MFI(14) indicator has shown strong improvement--suggesting that these stocks are being accumulated at current levels.

That said, no indicator should be used in isolation--use this list as a starting point for your own analysis.

In addition, all of these names mentioned below are generating significant amounts of free cash flow, when expressed as a percentage of their market cap.

MFI(14) values sourced from StrategyDesk, levered free cash flow data sourced from Yahoo! Finance, all other data sourced from Finviz.



List sorted by levered free cash flow as a percentage of market cap. (Note: Data was collected on Friday morning)

1. GSE Systems Inc. (NYSEMKT:GVP): Business Software & Services Industry. Market cap of $60.16M. Thursday's close at $3.04 vs. $3.2 five days prior (-5.0% change). MFI(14) index at 24.93 vs. MFI(14) index at 22.95 five days ago (8.63% change). TTM levered free cashflow at 12.13M, which represents about 20.16% of the company's current market cap.

2. Argan, Inc. (NYSE:AGX): Heavy Construction Industry. Market cap of $114.10M. Thursday's close at $8.41 vs. $8.68 five days prior (-3.11% change). MFI(14) index at 26.18 vs. MFI(14) index at 23.04 five days ago (13.63% change). TTM levered free cashflow at 20.27M, which represents about 17.77% of the company's current market cap.

3. Agilysys Inc. (NASDAQ:AGYS): Information Technology Services Industry. Market cap of $113.64M. Thursday's close at $5.01 vs. $5.31 five days prior (-5.65% change). MFI(14) index at 23.91 vs. MFI(14) index at 16.5 five days ago (44.91% change). TTM levered free cashflow at 19.95M, which represents about 17.56% of the company's current market cap.

4. Albany International Corp. (NYSE:AIN): Textile Industrial Industry. Market cap of $717.91M. Thursday's close at $22.87 vs. $23.89 five days prior (-4.27% change). MFI(14) index at 33.09 vs. MFI(14) index at 28.29 five days ago (16.97% change). TTM levered free cashflow at 77.48M, which represents about 10.79% of the company's current market cap.

5. Federal Signal Corp. (NYSE:FSS): Trucks & Other Vehicles Industry. Market cap of $344.70M. Thursday's close at $5.74 vs. $6.2 five days prior (-7.42% change). MFI(14) index at 34.8 vs. MFI(14) index at 26.56 five days ago (31.02% change). TTM levered free cashflow at 35.38M, which represents about 10.26% of the company's current market cap.

6. Pep Boys - Manny, Moe & Jack (NYSE:PBY): Auto Parts Stores Industry. Market cap of $617.64M. Thursday's close at $11.65 vs. $12.55 five days prior (-7.17% change). MFI(14) index at 13.73 vs. MFI(14) index at 12.63 five days ago (8.71% change). TTM levered free cashflow at 61.30M, which represents about 9.92% of the company's current market cap.

7. Euronet Worldwide Inc. (NASDAQ:EEFT): Business Services Industry. Market cap of $887.26M. Thursday's close at $17.16 vs. $17.9 five days prior (-4.13% change). MFI(14) index at 33.49 vs. MFI(14) index at 26.71 five days ago (25.38% change). TTM levered free cashflow at 86.73M, which represents about 9.78% of the company's current market cap. The stock is a short squeeze candidate, with a short float at 6.29% (equivalent to 15.72 days of average volume).

8. Perma-Fix Environmental Services Inc. (NASDAQ:PESI): Waste Management Industry. Market cap of $80.40M. Thursday's close at $1.47 vs. $1.49 five days prior (-1.34% change). MFI(14) index at 34.46 vs. MFI(14) index at 30.15 five days ago (14.3% change). TTM levered free cashflow at 7.74M, which represents about 9.63% of the company's current market cap.

9. Developers Diversified Realty Corp. (NYSE:DDR):
REIT. Market cap of $3.57B. Thursday's close at $13.88 vs. $13.96 five days prior (-0.57% change). MFI(14) index at 34.24 vs. MFI(14) index at 28.52 five days ago (20.06% change). TTM levered free cashflow at 332.61M, which represents about 9.31% of the company's current market cap.

10. Orbitz Worldwide, Inc. (NYSE:OWW): General Entertainment Industry. Market cap of $360.31M. Thursday's close at $3.53 vs. $3.6 five days prior (-1.94% change). MFI(14) index at 32.91 vs. MFI(14) index at 17.17 five days ago (91.67% change). TTM levered free cashflow at 30.76M, which represents about 8.54% of the company's current market cap.

11. Incyte Corporation (NASDAQ:INCY): Biotechnology Industry. Market cap of $1.66B. Thursday's close at $13.29 vs. $14.03 five days prior (-5.27% change). MFI(14) index at 24.64 vs. MFI(14) index at 22.15 five days ago (11.24% change). TTM levered free cashflow at 136.94M, which represents about 8.23% of the company's current market cap.

12. Warren Resources Inc. (NASDAQ:WRES): Oil & Gas Equipment & Services Industry. Market cap of $305.38M. Thursday's close at $4.05 vs. $4.3 five days prior (-5.81% change). MFI(14) index at 30.91 vs. MFI(14) index at 22.59 five days ago (36.83% change). TTM levered free cashflow at 21.14M, which represents about 6.92% of the company's current market cap.

13. AEP Industries Inc. (NASDAQ:AEPI): Rubber & Plastics Industry. Market cap of $169.16M. Thursday's close at $27.5 vs. $29.15 five days prior (-5.66% change). MFI(14) index at 26.57 vs. MFI(14) index at 18.8 five days ago (41.33% change). TTM levered free cashflow at 11.28M, which represents about 6.67% of the company's current market cap. It's been a rough couple of days for the stock, losing 5.49% over the last week.

14. OncoGenex Pharmaceuticals, Inc. (NASDAQ:OGXI): Diagnostic Substances Industry. Market cap of $145.58M. Thursday's close at $15.02 vs. $15.62 five days prior (-3.84% change). MFI(14) index at 23.88 vs. MFI(14) index at 19.19 five days ago (24.44% change). TTM levered free cashflow at 8.59M, which represents about 5.9% of the company's current market cap.

15. Neurocrine Biosciences Inc. (NASDAQ:NBIX): Biotechnology Industry. Market cap of $375.45M. Thursday's close at $6.85 vs. $6.94 five days prior (-1.3% change). MFI(14) index at 26.05 vs. MFI(14) index at 20.19 five days ago (29.02% change). TTM levered free cashflow at 21.55M, which represents about 5.74% of the company's current market cap.

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

Source: Rebound Ideas: 15 Cash-Rich Companies Seeing Bullish Technical Divergence