Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

32 Undervalued Stocks Hedge Funds Are Avoiding

By Contextuall Stock MarketsDec 14, 2012 02:16AM ET
www.investing.com/analysis/32-undervalued-stocks-hedge-funds-are-avoiding-147552
32 Undervalued Stocks Hedge Funds Are Avoiding
By Contextuall   |  Dec 14, 2012 02:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
LYV
+1.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KFRC
-0.88%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KONA
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PMFG
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
QCOR
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RTEC_...
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Screen Criteria:

List of stocks being sold by hedge funds, that also have low Levered Free Cash Flow to Enterprise Value (LFCF/EV) ratios.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: 1.45%

Average 1-Month Return of All Stocks Mentioned Below: 0.89%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 11 out of 32 (34.38%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 9 out of 32 (28.13%)

Chart: Distribution of 1-Week Returns For All Stocks Mentioned Below
Distribution 1.png
Distribution 1.png

1. Rudolph Technologies Inc. (RTEC): Designs, develops, manufactures, and sells process control defect inspection, metrology, and process control software systems to microelectronics device manufacturers. Net institutional shares sold during the most recent quarter at 5.0M shares (15.96% of float at 31.33M shares). Levered free cash flow at 28.73M vs. enterprise value at 239.14M (LFCF/EV ratio at 0.12).

2. PMFG, Inc. (PMFG): Provides custom-engineered systems and products primarily to power generation, natural gas infrastructure and refining, and petrochemical processing markets worldwide. Net institutional shares sold during the most recent quarter at 3.9M shares (24.61% of float at 15.85M shares). Levered free cash flow at 15.03M vs. enterprise value at 77.12M (LFCF/EV ratio at 0.19).

3. Heidrick & Struggles International Inc. (HSII): Provides executive search and leadership consulting services in the Americas, Europe, and the Asia Pacific. Net institutional shares sold during the most recent quarter at 961.4K shares (6.64% of float at 14.48M shares). Levered free cash flow at 13.07M vs. enterprise value at 110.98M (LFCF/EV ratio at 0.12).

4. Kforce Inc. (KFRC): Provides professional and technical specialty staffing services and solutions to the federal government, state and local governments, local and regional companies, and small to mid-sized companies in the United States. Net institutional shares sold during the most recent quarter at 2.1M shares (7.09% of float at 29.64M shares). Levered free cash flow at 54.96M vs. enterprise value at 462.47M (LFCF/EV ratio at 0.12).

5. Questcor Pharmaceuticals, Inc. (QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Net institutional shares sold during the most recent quarter at 2.8M shares (5.12% of float at 54.74M shares). Levered free cash flow at 162.53M vs. enterprise value at 1.46B (LFCF/EV ratio at 0.11).

6. IntraLinks Holdings, Inc. (IL): Provides software-as-a-service (SaaS) solutions for securely managing content, exchanging critical business information, and collaborating within and among organizations worldwide. Net institutional shares sold during the most recent quarter at 1.9M shares (6.38% of float at 29.76M shares). Levered free cash flow at 36.69M vs. enterprise value at 348.57M (LFCF/EV ratio at 0.11).

7. VASCO Data Security International Inc. (VDSI): The company has developed patented digital security hardware, software, and digital-signature technology. Net institutional shares sold during the most recent quarter at 2.6M shares (9.26% of float at 28.08M shares). Levered free cash flow at 19.55M vs. enterprise value at 192.93M (LFCF/EV ratio at 0.10).

8. OM Group Inc. (OMG): Develops, produces, and markets specialty chemicals, advanced materials, and electrochemical energy storage products worldwide. Net institutional shares sold during the most recent quarter at 1.6M shares (5.10% of float at 31.36M shares). Levered free cash flow at 215.78M vs. enterprise value at 931.23M (LFCF/EV ratio at 0.23).

9. CNO Financial Group, Inc. (CNO): Engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. Net institutional shares sold during the most recent quarter at 13.5M shares (6.67% of float at 202.44M shares). Levered free cash flow at 684.69M vs. enterprise value at 4.93B (LFCF/EV ratio at 0.14).

10. SYNNEX Corp. (SNX): Provides distribution and business process outsourcing services to resellers, retailers, and original equipment manufacturers (OEMs). Net institutional shares sold during the most recent quarter at 10.5M shares (40.42% of float at 25.98M shares). Levered free cash flow at 239.21M vs. enterprise value at 1.33B (LFCF/EV ratio at 0.18).

11. Global Power Equipment Group Inc. (GLPW): Designs, engineers, and manufactures heat recovery and auxiliary power equipment for the utility and industrial sectors. Net institutional shares sold during the most recent quarter at 2.2M shares (14.64% of float at 15.03M shares). Levered free cash flow at 22.32M vs. enterprise value at 194.54M (LFCF/EV ratio at 0.11).

12. Live Nation Entertainment, Inc. (LYV): Operates as a live entertainment company internationally. Net institutional shares sold during the most recent quarter at 9.6M shares (7.51% of float at 127.87M shares). Levered free cash flow at 295.85M vs. enterprise value at 2.59B (LFCF/EV ratio at 0.11).

13. CACI International Inc. (CACI): Provides information technology (IT) and professional services to the U. Net institutional shares sold during the most recent quarter at 2.6M shares (12.63% of float at 20.59M shares). Levered free cash flow at 223.62M vs. enterprise value at 1.85B (LFCF/EV ratio at 0.12).

14. Digital River Inc. (DRIV): Provides outsourced e-commerce solutions worldwide. Net institutional shares sold during the most recent quarter at 2.8M shares (9.64% of float at 29.05M shares). Levered free cash flow at 33.29M vs. enterprise value at 140.65M (LFCF/EV ratio at 0.24).

15. Spectrum Pharmaceuticals, Inc. (SPPI): Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. Net institutional shares sold during the most recent quarter at 3.1M shares (6.34% of float at 48.88M shares). Levered free cash flow at 72.17M vs. enterprise value at 574.31M (LFCF/EV ratio at 0.13).

16. j2 Global, Inc. (JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Net institutional shares sold during the most recent quarter at 2.3M shares (5.35% of float at 43.03M shares). Levered free cash flow at 126.05M vs. enterprise value at 1.22B (LFCF/EV ratio at 0.10).

17. Aeropostale, Inc. (ARO): Designs, markets, and sells casual sportswear and other fashion merchandise under its own brands, principally targeted at customers 11 to 18 years old. Net institutional shares sold during the most recent quarter at 5.5M shares (7.09% of float at 77.59M shares). Levered free cash flow at 112.64M vs. enterprise value at 892.50M (LFCF/EV ratio at 0.13).

18. AXT Inc. (AXTI): Designs, develops, manufactures, and distributes compound and single element semiconductor substrates for use in wireless communications, lighting display applications, fiber optic communications, and solar cell. Net institutional shares sold during the most recent quarter at 2.8M shares (9.06% of float at 30.91M shares). Levered free cash flow at 12.43M vs. enterprise value at 53.09M (LFCF/EV ratio at 0.23).

19. Eastern Co. (EML): The Eastern Company manufactures and sells industrial hardware, security products, and metal products in North America. Net institutional shares sold during the most recent quarter at 916.7K shares (16.94% of float at 5.41M shares). Levered free cash flow at 9.39M vs. enterprise value at 76.17M (LFCF/EV ratio at 0.12).

20. TeleCommunication Systems Inc. (TSYS): Develops and applies secure mobile communication technology in the United States and internationally. Net institutional shares sold during the most recent quarter at 5.1M shares (11.44% of float at 44.59M shares). Levered free cash flow at 28.17M vs. enterprise value at 241.22M (LFCF/EV ratio at 0.12).

21. Convergys Corporation (CVG): Provides relationship management solutions worldwide. Net institutional shares sold during the most recent quarter at 10.8M shares (10.05% of float at 107.41M shares). Levered free cash flow at 177.29M vs. enterprise value at 1.07B (LFCF/EV ratio at 0.17).

22. R.R. Donnelley & Sons Company (RRD): Provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. Net institutional shares sold during the most recent quarter at 13.4M shares (7.51% of float at 178.43M shares). Levered free cash flow at 751.22M vs. enterprise value at 5.09B (LFCF/EV ratio at 0.15).

23. SeaBright Holdings, Inc. (SBX): Provides multi-jurisdictional workers’ compensation insurance for maritime customers, state act customers, and employers in the construction industry. Net institutional shares sold during the most recent quarter at 1.5M shares (8.04% of float at 18.66M shares). Levered free cash flow at 43.63M vs. enterprise value at 196.95M (LFCF/EV ratio at 0.22).

24. Capella Education Co. (CPLA): Provides online postsecondary education services in the United States. Net institutional shares sold during the most recent quarter at 785.7K shares (7.41% of float at 10.60M shares). Levered free cash flow at 46.19M vs. enterprise value at 245.91M (LFCF/EV ratio at 0.19).

25. Seagate Technology PLC (STX): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Net institutional shares sold during the most recent quarter at 17.7M shares (5.39% of float at 328.31M shares). Levered free cash flow at 2.27B vs. enterprise value at 11.20B (LFCF/EV ratio at 0.20).

26. CA Technologies (CA): Designs, develops, markets, delivers, licenses, and supports information technology (IT) management software products that operate on a range of hardware platforms and operating systems. Net institutional shares sold during the most recent quarter at 19.4M shares (5.63% of float at 344.83M shares). Levered free cash flow at 1.09B vs. enterprise value at 9.32B (LFCF/EV ratio at 0.12).

27. ViroPharma Inc. (VPHM): Engages in the development and commercialization of products that address serious diseases with a focus on products used by physician specialists or in hospital settings in the United States and internationally. Net institutional shares sold during the most recent quarter at 4.4M shares (9.11% of float at 48.31M shares). Levered free cash flow at 150.28M vs. enterprise value at 1.41B (LFCF/EV ratio at 0.11).

28. DHT Holdings, Inc. (DHT): Operates a fleet of double-hull crude oil tankers. Net institutional shares sold during the most recent quarter at 670.5K shares (7.97% of float at 8.41M shares). Levered free cash flow at 35.17M vs. enterprise value at 176.31M (LFCF/EV ratio at 0.20).

29. Kona Grill Inc. (KONA): Operates upscale casual dining restaurants in the United States. Net institutional shares sold during the most recent quarter at 272.8K shares (5.30% of float at 5.15M shares). Levered free cash flow at 6.74M vs. enterprise value at 65.81M (LFCF/EV ratio at 0.10).

30. AK Steel Holding Corporation (AKS): Produces flat-rolled carbon, stainless, and electrical steels, and tubular products primarily in the United States and internationally. Net institutional shares sold during the most recent quarter at 8.9M shares (8.15% of float at 109.15M shares). Levered free cash flow at 249.55M vs. enterprise value at 1.80B (LFCF/EV ratio at 0.14).

31. Sears Holdings Corporation (SHLD): Operates as a retailer in the United States and Canada. Net institutional shares sold during the most recent quarter at 2.8M shares (6.64% of float at 42.15M shares). Levered free cash flow at 1.30B vs. enterprise value at 7.95B (LFCF/EV ratio at 0.16).

32. Frozen Food Express Industries Inc. (FFEX): Provides temperature-controlled truckload and less-than-truckload services in the United States. Net institutional shares sold during the most recent quarter at 1.9M shares (13.54% of float at 14.03M shares). Levered free cash flow at 5.69M vs. enterprise value at 47.88M (LFCF/EV ratio at 0.12).

Distribution 1.png
Distribution 1.png


Original post
32 Undervalued Stocks Hedge Funds Are Avoiding
 

Related Articles

32 Undervalued Stocks Hedge Funds Are Avoiding

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email