{+++}
Contrarian investing is psychologically difficult. Investors often must look at a stock chart that shows a 60% decline, or even higher, and ignore any pattern-recognition skills that tell them that the price is going to decrease further. Much of the discussion of the stock may come from short-sellers, who have earned high returns from the stock’s decline and have seen their investment thesis justified.
Each stock below has at least a $2 billion market cap, a short interest of at least 5%, and a stock performance on a trailing 52-week basis that is in the 20th percentile of the market or lower.
As you guys know, I like the coal stocks on this basis and I am not rendering an opinion on any of the stocks below, but I do like WLT, and will wait for earnings to get out of the way on that one.
I may do a post on the coal names over the weekend.
Green Mountain Coffee Roasters
Market Cap: $2.7B; Short %: 19%; 52-week return: -81%
Netflix
Market Cap: $4.5B; Short %: 22%; 52-week return: -71%
Research In Motion
Market Cap: $3.6B; Short %: 18%; 52-week return: -74%
United States Steel
Market Cap: $2.6B; Short %: 24%;
Ultra Petroleum
Market Cap: $3.4B; Short %: 13%; 52-week return: -53%
Ctrip.com
Market Cap: $2.1B; Short %: 8%; 52-week return: -67%
Patterson-UTI Energy
Market Cap: $2.3B; Short %: 10%; 52-week return: -55%
Ivanhoe Mines
Market Cap: $5.9B; Short %: 7%: 52-week return: -71%
Walter Energy
Market Cap: $2.1 B; Short %: 6%; 52-week return: -75%
Abercrombie & Fitch
Market Cap: $2.9B; Short %: 8%; 52-week return: -54%
Cliffs Natural Resources
Market Cap: $6.1B; Short %; 7%; 52-week return: -57%
Riverbed Technology
Market Cap: $2.3B; Short 5: 6%; 52-week return: -53%