Do you consider yourself a contrarian investor? For ideas on how to start your own contrarian search, we ran a screen.
We began by screening the small-cap sector for stocks with bearish sentiment, with float shorts above 10%. We also looked for names that have seen an increased number of shares shorted month over month.
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 close to 2% of share float or higher. 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.
List Average 1-Year Return: 32%
Given all of the optimism, do you think these companies deserve to be so highly shorted? Use this list as a starting point for your own analysis.
2. Gentiva Health Services Inc. (GTIV, Earnings, Analysts, Financials): Provides home health services and hospice care in the United States. Market cap at $383.96M, most recent closing price at $12.56. Float short: 14.38%. Shares shorted have increased from 2.99M to 3.76M over the last month, an increase which represents about 2.96% of the company’s float of 26.02M shares. Days to cover ratio at 10.25 days.
1. Endeavour International Corporation (END, Earnings, Analysts, Financials): Engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and the United Kingdom. Market cap at $470.66M, most recent closing price at $10.10. Float short: 19.35%. Shares shorted have increased from 7.04M to 7.84M over the last month, an increase which represents about 2.86% of the company’s float of 27.97M shares. Days to cover ratio at 13.05 days.
3. Kronos Worldwide Inc. (KRO, Earnings, Analysts, Financials): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap at $2.01B, most recent closing price at $17.36. Float short: 30.14%. Shares shorted have increased from 6.05M to 6.32M over the last month, an increase which represents about 1.38% of the company’s float of 19.57M shares. Days to cover ratio at 7.34 days.
4. Pacira Pharmaceuticals Inc. (PCRX, Earnings, Analysts, Financials): Engages in the development, commercialization, and manufacture of pharmaceutical products for hospitals and ambulatory surgery centers. Market cap at $553.41M, most recent closing price at $17.07. Float short: 10.6%. Shares shorted have increased from 2.80M to 3.10M over the last month, an increase which represents about 1.45% of the company’s float of 20.71M shares. Days to cover ratio at 10.55 days.
5. Wright Medical Group Inc. ( WMGI, Earnings, Analysts, Financials): Engages in the design, manufacture, and marketing of devices and biologic products for the extremity, hip, and knee repair and reconstruction. Market cap at $850.06M, most recent closing price at $21.45. Float short: 14.27%. Shares shorted have increased from 4.09M to 5.60M over the last month, an increase which represents about 4.71% of the company’s float of 32.04M shares. Days to cover ratio at 12.37 days.
*Insider and short data sourced from Yahoo! Finance, all other data sourced from Finviz.
Use Kapitall’s Tools: Looking for ways to analyze this list?
Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- Gentiva Health Services Inc. (GTIV, Chart, Download SEC Filings)
- Endeavour International Corporation (END, Chart, Download SEC Filings)
- Kronos Worldwide Inc. (KRO, Chart, Download SEC Filings)
- Pacira Pharmaceuticals Inc. (PCRX, Chart, Download SEC Filings)
- Wright Medical Group Inc. ( WMGI, Chart, Download SEC Filings)
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