Do you take trading signals from smart money buying and selling trends? For a closer look at stocks currently rejected by smart money institutional investors, we ran a screen.
We began by screening the semiconductors industry for stocks that appear undervalued relative to earnings growth, with PEG below 1. Perhaps they appear undervalued for a reason...
We screened these names for those with bearish sentiment from institutional investors, with significant net institutional sales over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform.
Tool provided by Kapitall.com
Do you think these names will drop like the smart money expects? Use this list as a starting point for your own analysis.
1. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $963.44M, most recent closing price at $20.99. PEG = 0.51. Net institutional sales in the current quarter at -2.6M shares, which represents about 7.99% of the company's float of 32.56M shares.
2. Atmel Corporation (ATML): Designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products. Market cap at $2.86B, most recent closing price at $6.49. PEG = 0.44. Net institutional sales in the current quarter at -22.2M shares, which represents about 5.27% of the company's float of 420.97M shares.
3. Intel Corporation (INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $116.92B, most recent closing price at $23.37. PEG = 0.92. Net institutional sales in the current quarter at -254.5M shares, which represents about 5.09% of the company's float of 5.00B shares.
4. Marvell Technology Group Ltd. (MRVL): Designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Market cap at $5.77B, most recent closing price at $10.34. PEG = 0.9. Net institutional sales in the current quarter at -26.1M shares, which represents about 5.74% of the company's float of 454.46M shares.
5. CEVA Inc. (CEVA): CEVA, Inc. and its subsidiaries engage in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. Market cap at $391.48M, most recent closing price at $17.33. PEG = 0.76. Net institutional sales in the current quarter at -2.1M shares, which represents about 9.4% of the company's float of 22.33M shares.
Institutional data sourced from Fidelity, 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.