Do you consider yourself a contrarian investor, always looking for opportunities against market trends? For ideas on how to start your own contrarian search, we ran a screen.
We began by screening the consumer goods sector for stocks with bearish sentiment, with float shorts above 10%.
We then screened these names for those with the confidence of their company insiders, such as members of the board and upper management, with significant net insider purchases over the last six months representing at least 2% of share float. Since most companies only have a handful of company insiders, net insider purchases representing 2% of share float is a big show of confidence in their employer's prospects.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Tool provided by Kapitall.
Do you think insiders are calling it right on these names? Use this list as a starting point for your own analysis.
List sorted by net insider shares purchased as a percent of share float.
1. Fuel Systems Solutions, Inc. (FSYS): Engages in the design, manufacture, and supply of alternative fuel components and systems for use in the transportation, industrial, and power generation markets primarily in North America, Europe, Asia, the Pacific Rim, and Latin America. Market cap at $296.9M, most recent closing price at $14.83. Float short at 10.95%. Over the last six months, insiders were net buyers of 375,940 shares, which represents about 2.63% of the company's 14.30M share float.
2. Sealy Corporation (ZZ): Together with its subsidiaries, manufactures and markets various bedding products. Market cap at $171.65M, most recent closing price at $1.70. Float short at 15.44%. Over the last six months, insiders were net buyers of 849,494 shares, which represents about 2.4% of the company's 35.35M share float.
3. STR Holdings, Inc. (STRI): Engages in the manufacture and sale of encapsulants to the solar module industry. Market cap at $144.84M, most recent closing price at $3.48. Float short at 18.51%. Over the last six months, insiders were net buyers of 779,802 shares, which represents about 2.33% of the company's 33.48M share float.
*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.