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Here we offer an interesting way to search for undervalued firms – by finding those with current assets exceeding total liabilities by an amount greater than market cap. We ran this screen on technically oversold stocks, with RSI (14) below 40. The screen produced seven companies, which we listed below. These companies are therefore technically oversold and have net liquid assets with a book value greater than market cap.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Use this list as a starting-off point for your own analysis. List sorted by market cap.

1. Ingram Micro Inc. (IM): Computers Wholesale Industry. Market cap of $2.85B. RSI (14) at 31.95. MRQ current assets exceed MRQ total liabilities by $2.88B (MRQ current assets at $8.14B vs. MRQ total liabilities at $5.27B). The stock is currently stuck in a downtrend, trading 5.41% below its SMA20, 10.69% below its SMA50, and 6.11% below its SMA200. It's been a rough couple of days for the stock, losing 6.94% over the last week.

2. Crexus Investment Corp. (CXS): Mortgage Investment Industry. Market cap of $809.11M. RSI (14) at 27.88. MRQ current assets exceed MRQ total liabilities by $865.80M (MRQ current assets at $1.26B vs. MRQ total liabilities at $393.09M). The stock is currently stuck in a downtrend, trading 5.79% below its SMA20, 6.72% below its SMA50, and 12.96% below its SMA200. It's been a rough couple of days for the stock, losing 6.63% over the last week.

3. PennyMac Mortgage Investment Trust (PMT): REIT. Market cap of $471.92M. RSI (14) at 35.89. MRQ current assets exceed MRQ total liabilities by $516.76M (MRQ current assets at $840.53M vs. MRQ total liabilities at $323.77M). The stock has gained 16.04% over the last year.

4. Imation Corp. (IMN): Data Storage Devices Industry. Market cap of $351.81M. RSI (14) at 36.52. MRQ current assets exceed MRQ total liabilities by $375.10M (MRQ current assets at $793.10M vs. MRQ total liabilities at $418.00M). The stock is a short squeeze candidate, with a short float at 10.23% (equivalent to 18.23 days of average volume). It's been a rough couple of days for the stock, losing 6.38% over the last week.

5. Xyratex Ltd. (XRTX): Data Storage Devices Industry. Market cap of $274.64M. RSI (14) at 37.3. MRQ current assets exceed MRQ total liabilities by $294.81M (MRQ current assets at $487.82M vs. MRQ total liabilities at $193.02M). It's been a rough couple of days for the stock, losing 5.03% over the last week.

6. ModusLink Global Solutions, Inc. (MLNK): Internet Software & Services Industry. Market cap of $197.93M. RSI (14) at 23.96. MRQ current assets exceed MRQ total liabilities by $207.45M (MRQ current assets at $387.08M vs. MRQ total liabilities at $179.63M). The stock is currently stuck in a downtrend, trading 10.95% below its SMA20, 15.14% below its SMA50, and 30.62% below its SMA200. The stock has performed poorly over the last month, losing 12.91%.

7. The9 Limited (NCTY): Gaming Activities Industry. Market cap of $177.65M. RSI (14) at 30.17. MRQ current assets exceed MRQ total liabilities by $189.45M (MRQ current assets at $239.47M vs. MRQ total liabilities at $50.02M). The stock is currently stuck in a downtrend, trading 9.01% below its SMA20, 13% below its SMA50, and 12.01% below its SMA200. The stock has gained 46.83% over the last year.

Accounting data sourced from Screener.co, RSI and all other data sourced from Finviz.

Source: 7 Oversold Stocks Undervalued by Liquidity