Company cash flow is a very important consideration when evaluating companies, although profits are often more publicized in the media than cash flows, they are also more affected by estimates made by management. On the other hand, it is very difficult to manipulate numbers on a bank statement.
We ran a screen on companies seeing bullish short trends, with significant decreases in shares shorted month-over-month. We screened these companies for those with strong growth in cash flows, comparing the trailing-twelve-month free operating cash flow/revenue to the company’s five-year average.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Your browser does not support iframes.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
List sorted by decrease in shares shorted as a percent of share float.
1. Entropic Communications, Inc. (ENTR): Semiconductor Industry. Market cap of $349.30M. Shares shorted have decreased from 24.32M to 15.76M month-over-month, a change representing 10.01% of the company's 85.51M share float. TTM free operating cash flow/revenue at 0.16 vs. 5-year average at 0.0049. This is a risky stock that is significantly more volatile than the overall market (beta = 2.61). The stock is a short squeeze candidate, with a short float at 18.41% (equivalent to 5.14 days of average volume). The stock has had a couple of great days, gaining 11.91% over the last week.
2. Constant Contact, Inc. (CTCT): Marketing Services Industry. Market cap of $537.92M. Shares shorted have decreased from 7.96M to 6.08M month-over-month, a change representing 6.50% of the company's 28.94M share float. TTM free operating cash flow/revenue at 0.07 vs. 5-year average at 0.02. The stock is a short squeeze candidate, with a short float at 21% (equivalent to 9.56 days of average volume). The stock has had a couple of great days, gaining 5.96% over the last week.
3. athenahealth, Inc. (ATHN): Business Services Industry. Market cap of $2.02B. Shares shorted have decreased from 7.30M to 6.28M month-over-month, a change representing 2.98% of the company's 34.18M share float. TTM free operating cash flow/revenue at 0.11 vs. 5-year average at 0.06. The stock is a short squeeze candidate, with a short float at 18.2% (equivalent to 11.21 days of average volume). The stock has had a couple of great days, gaining 16.13% over the last week.
4. Red Robin Gourmet Burgers Inc. (RRGB): Restaurants Industry. Market cap of $453.58M. Shares shorted have decreased from 2.06M to 1.73M month-over-month, a change representing 2.60% of the company's 12.70M share float. TTM free operating cash flow/revenue at 0.06 vs. 5-year average at 0.02. The stock is a short squeeze candidate, with a short float at 12.57% (equivalent to 5.19 days of average volume). After a solid performance over the last year, RRGB has pulled back during recent sessions. The stock has performed poorly over the last month, losing 14.29%.
5. Cavium Networks, Inc. (CAVM): Semiconductor Industry. Market cap of $1.45B. Shares shorted have decreased from 4.76M to 3.65M month-over-month, a change representing 2.35% of the company's 47.20M share float. TTM free operating cash flow/revenue at 0.10 vs. 5-year average at 0.03. The stock has had a couple of great days, gaining 17.97% over the last week. The stock has performed poorly over the last month, losing 13.42%.
6. Chipotle Mexican Grill, Inc. (CMG): Restaurants Industry. Market cap of $9.37B. Shares shorted have decreased from 3.63M to 2.95M month-over-month, a change representing 2.21% of the company's 30.81M share float. TTM free operating cash flow/revenue at 0.10 vs. 5-year average at 0.06. The stock has had a couple of great days, gaining 6.98% over the last week.
7. CROCS Inc. (CROX): Textile Footwear & Accessories Industry. Market cap of $2.42B. Shares shorted have decreased from 7.69M to 5.85M month-over-month, a change representing 2.09% of the company's 87.86M share float. TTM free operating cash flow/revenue at 0.07 vs. 5-year average at 0.01. The stock has had a couple of great days, gaining 16.07% over the last week. The stock has performed poorly over the last month, losing 12.42%.
8. Dillard's Inc. (DDS): Department Stores Industry. Market cap of $2.47B. Shares shorted have decreased from 8.20M to 7.55M month-over-month, a change representing 2.03% of the company's 32.05M share float. TTM free operating cash flow/revenue at 0.06 vs. 5-year average at 0.03. This is a risky stock that is significantly more volatile than the overall market (beta = 2.52). The stock is a short squeeze candidate, with a short float at 23.6% (equivalent to 5.67 days of average volume). The stock has had a couple of great days, gaining 15.69% over the last week.
9. Dice Holdings, Inc. (DHX): Staffing & Outsourcing Services Industry. Market cap of $650.59M. Shares shorted have decreased from 5.33M to 4.67M month-over-month, a change representing 1.36% of the company's 48.48M share float. TTM free operating cash flow/revenue at 0.37 vs. 5-year average at 0.14. This is a risky stock that is significantly more volatile than the overall market (beta = 2.39). Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 11.31. The stock is a short squeeze candidate, with a short float at 7.09% (equivalent to 5.72 days of average volume). The stock has had a couple of great days, gaining 13.33% over the last week.
10. Western Refining Inc. (WNR): Oil & Gas Refining & Marketing Industry. Market cap of $1.56B. Shares shorted have decreased from 17.08M to 16.36M month-over-month, a change representing 1.35% of the company's 53.48M share float. TTM free operating cash flow/revenue at 0.04 vs. 5-year average at 0.002. The stock has had a couple of great days, gaining 11.31% over the last week. The stock has performed poorly over the last month, losing 14.37%.
11. Universal Health Services Inc. (UHS): Hospitals Industry. Market cap of $3.71B. Shares shorted have decreased from 2.79M to 1.62M month-over-month, a change representing 1.31% of the company's 89.14M share float. TTM free operating cash flow/revenue at 0.05 vs. 5-year average at 0.01. The stock has performed poorly over the last month, losing 24.12%.
12. Affymetrix Inc. (AFFX): Scientific & Technical Instruments Industry. Market cap of $375.07M. Shares shorted have decreased from 8.83M to 8.11M month-over-month, a change representing 1.24% of the company's 57.90M share float. TTM free operating cash flow/revenue at 0.14 vs. 5-year average at 0.04. This is a risky stock that is significantly more volatile than the overall market (beta = 2.11). The stock has had a couple of great days, gaining 17.66% over the last week.
13. Westlake Chemical Corp. (WLK): Specialty Chemicals Industry. Market cap of $2.82B. Shares shorted have decreased from 3.11M to 2.29M month-over-month, a change representing 1.24% of the company's 66.08M share float. TTM free operating cash flow/revenue at 0.06 vs. 5-year average at 0.02. The stock has had a couple of great days, gaining 11.8% over the last week. The stock has performed poorly over the last month, losing 15.46%.
14. Thoratec Corp. (THOR): Medical Instruments & Supplies Industry. Market cap of $1.94B. Shares shorted have decreased from 3.57M to 2.95M month-over-month, a change representing 1.11% of the company's 55.97M share float. TTM free operating cash flow/revenue at 0.21 vs. 5-year average at 0.11. The stock has had a couple of great days, gaining 5.86% over the last week.
Short data sourced from Yahoo Finance, free operating cash flow/revenue data sourced from Screener.co, 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.
No comments:
Post a Comment