Seven 'Dead Cat Bounce' Stocks

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 |  Includes: CATY, CBC, CRBC, DLLR, ELY, ICON, NX
by: Stockerblog

A 'Dead Cat Bounce' takes place when a stock has a slight rise after a sharp drop. To utilize this type of investment opportunity, you would want to find a stock with favorable financials (although although great financials are not absolutely necessary) that has had a significant drop, with the anticipation that the stock should have a slight rise after the drop.

The following stocks all have market caps over $250 million, P/E ratios below 20, and PEG ratios below 1.7, plus they have all just traded at 52-week lows. Three of the stocks pay dividends. You may not consider these true 'dead cat bounces,' because for some, the drop was gradual, not sharp.

  • Citizens Republic Bancorp, Inc. (NASDAQ:CRBC) is a bank holding company which operates in Michigan, Wisconsin, Ohio, Iowa, and Indiana. The stock has a P/E of 6.1 and a PEG of 0.87.

  • Callaway Golf Company (NYSE:ELY) is a manufacturer and marketer of golf clubs and golf balls. The stock has a P/E of 15.1 and a PEG of 1.40 The company pays a yield of 2%.

  • Cathay General Bancorp (NASDAQ:CATY) is the holding company for Cathay Bank, which operates primarily in California. The stock has a P/E of 6.4 and a PEG of 0.67. The company pays a yield of 2.6%.

  • Dollar Financial Corp. (NASDAQ:DLLR) provides financial services such as check cashing, consumer loans, money orders, and electronic tax filing. The stock has a P/E of 9.6 and a PEG of 0.59.

  • Capitol Bancorp Ltd. (CBC) is a Lansing, Michigan-based bank holding company. The stock has a P/E of 15.2 and a PEG of 1.69. The company pays a yield of 3.7%.

  • Iconix Brand Group, Inc. (NASDAQ:ICON) markets various consumer brands including Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Danskin, Rocawear, Cannon, and Royal Velvet. The stock has a P/E of 12.7 and a PEG of 0.55.

  • Quanex Building Products Corporation (NYSE:NX) is a manufacturer and marketer of building products materials and components. The stock has a P/E of 18.1 and a PEG of 1.36.

  • Disclosure: The author has owned ELY for many years.