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If you like to look for potential value ideas, this may be an interesting list for you to analyze:

The stocks in this list have the following characteristics:
- Market cap above $300M
- Price to free cash flow below 5
- Put open interest is much larger than call open interest (i.e. bearish options sentiment)

Considering all the possible scenarios, which of these names do you think are value stocks and which are value traps?

1. Huaneng Power International Inc. (HNP): Electric Utilities Industry. Market cap of $6.89B. P/FCF at 2.48. Call open interest at 435 contracts vs. put open interest at 2,592, Put/Call ratio at 5.96. The stock has gained 9.74% over the last year.

2. Central Pacific Financial Corp. (CPF): Regional Bank. Market cap of $534.37M. P/FCF at 2.92. Call open interest at 1,522 contracts vs. put open interest at 5,663, Put/Call ratio at 3.72. The stock is currently stuck in a downtrend, trading -11.98% below its SMA20, -28.09% below its SMA50, and -54.05% below its SMA200. The stock has performed poorly over the last month, losing 13.6%.

3. M&F Worldwide Corp. (MFW): Business Services Industry. Market cap of $438.02M. P/FCF at 1.73. Call open interest at 922 contracts vs. put open interest at 3,373, Put/Call ratio at 3.66. The stock has lost 30.53% over the last year.



4. First Horizon National Corp. (FHN): Regional Bank. Market cap of $2.71B. P/FCF at 4.59. Call open interest at 11,342 contracts vs. put open interest at 27,395, Put/Call ratio at 2.42. The stock is a short squeeze candidate, with a short float at 6.02% (equivalent to 5.28 days of average volume). The stock has lost 25.09% over the last year.

5. Barclays PLC (BCS): Foreign Money Center Banks Industry. Market cap of $53.04B. P/FCF at 1.75. Call open interest at 21,265 contracts vs. put open interest at 46,300, Put/Call ratio at 2.18. This is a risky stock that is significantly more volatile than the overall market (beta = 2.52). The stock has performed poorly over the last month, losing 11.24%.

6. Capital One Financial Corp. (COF): Credit Services Industry. Market cap of $24.55B. P/FCF at 3.25. Call open interest at 34,626 contracts vs. put open interest at 67,332, Put/Call ratio at 1.94. PEG ratio at 0.73, and P/FCF ratio at 3.25. The stock has gained 25.95% over the last year.

7. H&R Block, Inc. (HRB): Personal Services Industry. Market cap of $4.84B. P/FCF at 3.31. Call open interest at 25,530 contracts vs. put open interest at 48,513, Put/Call ratio at 1.9. After a solid performance over the last year, HRB has pulled back during recent sessions. The stock is -5.63% below its SMA20 and -4.26% below its SMA50, but remains 16.57% above its SMA200. The stock has lost 2.7% over the last year.

8. ICICI Bank Ltd. (IBN): Foreign Regional Banks Industry. Market cap of $26.75B. P/FCF at 4.37. Call open interest at 22,034 contracts vs. put open interest at 41,381, Put/Call ratio at 1.88. This is a risky stock that is significantly more volatile than the overall market (beta = 2.26). The stock has gained 19.86% over the last year.

9. ITT Educational Services Inc. (ESI): Education & Training Services Industry. Market cap of $2.08B. P/FCF at 3.78. Call open interest at 23,212 contracts vs. put open interest at 38,360, Put/Call ratio at 1.65. The stock is a short squeeze candidate, with a short float at 24.98% (equivalent to 10.77 days of average volume). The stock has had a couple of great days, gaining 5.43% over the last week.

10. National Bank of Greece SA (NBG): Money Center Banks Industry. Market cap of $4.02B. P/FCF at 1.81. Call open interest at 19,718 contracts vs. put open interest at 32,522, Put/Call ratio at 1.65. This is a risky stock that is significantly more volatile than the overall market (beta = 2.06).

*Data sourced from Schaeffer’s and Finviz.

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

Source: Value Stocks or Value Traps? 9 Low P/FCF Stocks With Bearish Options Sentiment