Contrarian Ideas: 5 Recently Downgraded Stocks With Bearish Options Sentiment

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Compiled by Luis Gonzalez: The following is a list of stocks that have recently been downgraded by Wall Street analysts. In addition, all of these stocks have a large put option open interest relative to call option open interest (i.e. bearish options market sentiment).

If you're a contrarian, this excessive pessimism might raise a flag. Use this list as a starting point for your own analysis.

Options data sourced from Schaeffer's, analyst downgrades sourced from RTT News.

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The list has been sorted by the Put/Call ratio.

1. Ladish Co. Inc. (LDSH): Metal Fabrication Industry. Market cap of $717.65M. FBR Capital Markets downgraded the stock from Outperform to Market Perform on 11/18. Call open interest at 488 contracts vs. put open interest at 2,168 contracts (Put/Call ratio at 4.44). Short float at 4.22%, which implies a short ratio of 3.1 days. The stock has gained 239.09% over the last year.

2. PartnerRe Ltd. (PRE): Property & Casualty Insurance Industry. Market cap of $5.81B. Deutsche Bank downgraded the stock from Buy to Hold on 11/05. Call open interest at 650 contracts vs. put open interest at 1,934 contracts (Put/Call ratio at 2.98). Short float at 2.85%, which implies a short ratio of 5.86 days. The stock has gained 3.32% over the last year.

3. Bucyrus International Inc. (BUCY): Farm & Construction Machinery Industry. Market cap of $7.22B. KeyBanc Capital Markets downgraded the stock from Buy to Hold on 11/16. Call open interest at 54,997 contracts vs. put open interest at 88,117 contracts (Put/Call ratio at 1.6). Short float at 5.57%, which implies a short ratio of 1.57 days. The stock has gained 66.02% over the last year.

4. Gildan Activewear Inc. (GIL): Textile Industry. Market cap of $3.34B. FBR Capital Markets downgraded the stock from Market Perform to Underperform on 11/12. Call open interest at 3,267 contracts vs. put open interest at 5,112 contracts (Put/Call ratio at 1.56). Short float at 3.81%, which implies a short ratio of 9.7 days. The stock has gained 48.76% over the last year.

5. Taleo Corp. (TLEO): Application Software Industry. Market cap of $1.25B. Credit Suisse downgraded the stock from Outperform to Neutral on 11/09. Call open interest at 247 contracts vs. put open interest at 351 contracts (Put/Call ratio at 1.42). Short float at 4.67%, which implies a short ratio of 5.53 days. The stock has gained 39.63% over the last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: BUCY , GIL , LDSH , PRE , TLEO

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