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Rebound Ideas: 15 Stocks Trading Near 52-Week Low Experiencing Bullish Options Sentiment

By: Kapitall
Posted: 5/2/2011 10:44:00 AM
Referenced Stocks: CLGX;CPB;ETR;MTU;OMX;PTP;UEPS;WMS;WWE

If you are looking to invest in turnaround companies, this list may offer you an interesting starting point from your own analysis.

To compile this list we looked for stocks with the following characteristics:

-       Market cap above $300M

-       Trading 0-10% above its 52-week low

-       And experiencing significant bullish options sentiment

In this case, we defined the options sentiment as the percentage change of the Put/Call ratio over the last two weeks. All the companies in the list saw a significant decrease in their Put/Call ratio.

Considering that options traders are thought to predict the direction of the spot market, it seems like these stocks are bound to rally. What do you think? Which of these stocks are more likely to go higher from the current levels? 

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by the change in the Put/Call ratio

1. Net 1 Ueps Technologies Inc. (UEPS): Business Services Industry. Market cap of $379.35M. This stock is trading 2.31% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -85.71%, from 0.98 to 0.14. The stock has lost 50.15% over the last year.

Recent Developments: After completing the acquisition of KSNET (for $240M) back in November, UEPS reaffirmed guidance EPS guidance for the fiscal year 2011 on February of this year.

2. WMS Industries Inc. (WMS): Recreational Goods, Other Industry. Market cap of $1.86B. This stock is trading 9.56% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -81.91%, from 4.81 to 0.87. The stock has lost 33.32% over the last year.

Recent Developments: After issuing Q3 guidance below analysts’ estimates (Feb.), the company recently reiterated Q4 earnings and issued revenue guidance for fiscal year 2012.

3. Platinum Underwriters Holdings Ltd. (PTP): Property & Casualty Insurance Industry. Market cap of $1.40B. This stock is trading 9.39% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -63.16%, from 1.14 to 0.42. Relatively low correlation to the market (beta = 0.6), which may be appealing to risk averse investors. The stock has gained 2.77% over the last year.

Recent Developments: Back in February the company announced that it increased the authorized amount under its existing share repurchase program to a total of up to $250.0 million of its common shares. This represents an increase of approximately $139.9 million from the approximately $110.1 million remaining in the program.

4. Campbell Soup Co. (CPB): Processed & Packaged Goods Industry. Market cap of $10.64B. This stock is trading 3.09% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -58.16%, from 0.98 to 0.41. Relatively low correlation to the market (beta = 0.25), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 8.47% (equivalent to 6.99 days of average volume). The stock has lost 3.01% over the last year.

5. Entergy Corporation (ETR): Electric Utilities Industry. Market cap of $12.45B. This stock is trading 7.68% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -52.2%, from 1.82 to 0.87. Relatively low correlation to the market (beta = 0.62), which may be appealing to risk averse investors. The stock has lost 8.99% over the last year.

6. World Wrestling Entertainment Inc. (WWE): Entertainment - Diversified Industry. Market cap of $838.25M. This stock is trading 5.11% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -51.16%, from 2.15 to 1.05. Relatively low correlation to the market (beta = 0.62), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 12.28% (equivalent to 8.35 days of average volume). The stock has performed poorly over the last month, losing 11.15%.

7. OfficeMax Incorporated (OMX):
Specialty Retail, Other Industry. Market cap of $1.07B. This stock is trading 4.45% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -50.0%, from 1.02 to 0.51. This is a risky stock that is significantly more volatile than the overall market (beta = 2.67). The stock is a short squeeze candidate, with a short float at 13.4% (equivalent to 5.36 days of average volume). The stock is currently stuck in a downtrend, trading -21.65% below its SMA20, -23.87% below its SMA50, and -31.47% below its SMA200. The stock has lost 22.9% over the last year.

8. The Hanover Insurance Group Inc. (THG):
Property & Casualty Insurance Industry. Market cap of $1.90B. This stock is trading 3.18% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -50.0%, from 0.16 to 0.08. Relatively low correlation to the market (beta = 0.55), which may be appealing to risk averse investors. The stock has lost 4.59% over the last year.

9. Mitsubishi UFJ Financial Group, Inc. (MTU): Money Center Banks Industry. Market cap of $65.94B. This stock is trading 9.06% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -46.15%, from 0.13 to 0.07. The stock has lost 11.07% over the last year.

10. CoreLogic, Inc. (CLGX):
Surety & Title Insurance Industry. Market cap of $651.77M. This stock is trading 6.62% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -44.76%, from 1.05 to 0.58. The stock has lost 13.34% over the last year.

11. Tellabs Inc. (TLAB):
Communication Equipment Industry. Market cap of $1.74B. This stock is trading 5.0% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -41.18%, from 1.87 to 1.1. Relatively low correlation to the market (beta = 0.71), which may be appealing to risk averse investors. The stock is currently stuck in a downtrend, trading -6.88% below its SMA20, -7.45% below its SMA50, and -25.52% below its SMA200. It's been a rough couple of days for the stock, losing 8.73% over the last week.

12. Overseas Shipholding Group Inc. (OSG): Shipping Industry. Market cap of $856.82M. This stock is trading 1.78% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -31.58%, from 0.57 to 0.39. The stock is a short squeeze candidate, with a short float at 17.52% (equivalent to 6.3 days of average volume). The stock is currently stuck in a downtrend, trading -7.42% below its SMA20, -12.61% below its SMA50, and -18.31% below its SMA200. The stock has performed poorly over the last month, losing 10.65%.

13. EnerNOC, Inc. (ENOC): Business Services Industry. Market cap of $442.93M. This stock is trading 4.24% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -31.15%, from 1.83 to 1.26. The stock is a short squeeze candidate, with a short float at 16.11% (equivalent to 6.79 days of average volume). The stock has performed poorly over the last month, losing 12.9%.

14. National Bank of Greece SA (NBG): Money Center Banks Industry. Market cap of $4.50B. This stock is trading 4.05% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -26.09%, from 1.84 to 1.36. This is a risky stock that is significantly more volatile than the overall market (beta = 2.09). The stock is currently stuck in a downtrend, trading -9.6% below its SMA20, -15.63% below its SMA50, and -27.86% below its SMA200. The stock has performed poorly over the last month, losing 18.28%.

15. American Superconductor Corporation (AMSC): Diversified Electronics Industry. Market cap of $598.77M. This stock is trading 1.65% above its 52-week low. Over the last two weeks its Put/Call ratio decreased by -23.38%, from 0.77 to 0.59. The stock is currently stuck in a downtrend, trading -25.43% below its SMA20, -45.55% below its SMA50, and -58.98% below its SMA200. The stock has performed poorly over the last month, losing 49.92%.

Options data sourced from Schaeffer’s, other relevant data sourced from Finviz. Data gathered on April 28th.