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The following is a list of companies that are approaching an inflection point where the 50-day moving average moved above the 200-day moving average. When these two moving averages cross, it often represents a shift in investor sentiment (from bears to bulls), aka the "Golden Cross" signal.

In addition, all of these stocks have conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity was founded in 2002 to develop risk management tools based on a statistical analysis of corporate integrity. The Accounting and Governance Risk (AGR) rating is a forensic measure of the transparency and reliability of a corporation's financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices, according to Audit Integrity.

All the companies in this list have high AGR scores above 89, i.e. more conservative and transparent accounting practices than most other firms.

If you're looking for transparent companies with good upside momentum, this list might offer an interesting starting point for your own analysis.

Short float values sourced from Finviz and AGR ratings sourced from Audit Integrity.



List sorted by AGR score.

1. Transatlantic Holdings Inc. (NYSE:TRH): Property & Casualty Insurance Industry. Market cap of $2.92B. SMA50 at $50.64 vs. SMA200 at $49.74 (price at time of writing $46.44). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 100. Might be undervalued at current levels, with a PEG ratio at 0.68, and P/FCF ratio at 2.9. The stock is currently stuck in a downtrend, trading -5.51% below its SMA20, -8.29% below its SMA50, and -6.63% below its SMA200. The stock has performed poorly over the last month, losing 10.02%.

2. Stein Mart Inc. (NASDAQ:SMRT): Apparel Stores Industry. Market cap of $430.79M. SMA50 at $39.85 vs. SMA200 at $39.42 (price at time of writing $9.98). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 98. This is a risky stock that is significantly more volatile than the overall market (beta = 2.45). Exhibiting strong upside momentum--currently trading 10.75% above its SMA20, 16.55% above its SMA50, and 17.8% above its SMA200. The stock has had a good month, gaining 19.69%.

3. CSG Systems International Inc. (NASDAQ:CSGS):
Application Software Industry. Market cap of $672.51M. SMA50 at $47.45 vs. SMA200 at $46.56 (price at time of writing $19.18). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 95. The stock is a short squeeze candidate, with a short float at 5.48% (equivalent to 6.67 days of average volume). The stock has lost 10.79% over the last year.

4. 99 Cents Only Store (NYSE:NDN): Discount, Variety Stores Industry. Market cap of $1.37B. SMA50 at $39.27 vs. SMA200 at $38.73 (price at time of writing $19.5). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 93. The stock is a short squeeze candidate, with a short float at 13.81% (equivalent to 6.81 days of average volume). The stock has had a good month, gaining 14.74%.

5. National Interstate Corporation (NASDAQ:NATL): Property & Casualty Insurance Industry. Market cap of $398.91M. SMA50 at $48.29 vs. SMA200 at $47.9 (price at time of writing $20.15). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 92. Relatively low correlation to the market (beta = 0.62), which may be appealing to risk averse investors. The stock has gained 4.59% over the last year.

6. Vicor Corp. (NASDAQ:VICR): Diversified Electronics Industry. Market cap of $642.42M. SMA50 at $45.9 vs. SMA200 at $45.27 (price at time of writing $15.58). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 90. The stock is a short squeeze candidate, with a short float at 9.36% (equivalent to 14.86 days of average volume). The stock has performed poorly over the last month, losing 11.%.

7. Simmons First National Corporation (NASDAQ:SFNC):
Regional Bank. Market cap of $470.88M. SMA50 at $47.7 vs. SMA200 at $46.8 (price at time of writing $27.23). According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 89. The stock has gained 1.6% 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: 7 Breakout Stocks With Conservative Accounting Practices