8/01/2016

Declining Short Position to Uncover Improved Valuation




This post started by finding companies with aggressive short covering for less than 2 billion in market size. The thought is research shows companies with high shorts positions underperform the market as a group. Therefore, why not invert the research to find companies with aggressive short covering. This can create a pool of ideas to research for overlooked improved fundamentals. Further filtering stocks by selecting stocks with negative YTD stock returns,market size less than 120M,improving capital structure and valuation   













































ACW;Accuride Corp is a manufacturer and supplier of commercial vehicle components (over 40% market share) in North America. Its products include commercial vehicle wheels, wheel-end components/assemblies, truck body and chassis parts, ductile and gray iron castings.


Accuride emerged from bankruptcy during 2010 with a new CEO and a strong capital expenditure commitment to modernize. These investment should be realized.



























BBRG;"Bravo Brio Restaurant Group is the owner and operator of two Italian restaurant brands, BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO)." Morningstar



Aggressive share buybacks, 2013 shares outstanding were 19.54M reduced by 25% to the MRQ 14.77M. Value institutions have been purchasing shares over the most recent quarter. HEARTLAND ADVISORS added 26,200 shares during the quarter ending 03/31/16 to reach 906,975 shares held. PORTOLAN CAPITAL added 261,678 shares for quarter ending 03/31/16 shares to reach a balance of 593,201. Kennedy Capital added 33,695 shares to reach current shares held 478,403.


Shares short as a percentage of float was 7.07% May 15 , 2016 progressively reduced to 1.47%









HBIO; "Harvard Bioscience Inc is a developer, manufacturer and marketer of scientific instruments, systems and lab consumables used to advance life science for basic research, drug discovery, clinical and environmental testing". Morningstar

HHS;"Harte-Hanks Inc is a multi-channel marketing company. The Company develops integrated solutions that connect brands with prospects and customers, moving them beyond awareness to transactions and brand loyalty". Morningstar

MRIN; "Marin Software Inc provides a cloud-based digital advertising management solution for search, display, social and mobile advertising channels to improve financial performance, realize efficiencies and time savings, and improve business decisions"
Morningstar

NVLS; "Nivalis Therapeutics Inc is engaged in developing small molecule therapeutics for the treatment of diseases such as cystic fibrosis, asthma, chronic obstructive pulmonary disease, inflammatory bowel disease and certain cardiovascular disorders".
Morningstar

VISI; "Volt Information Sciences Inc provides staffing services, outsourcing solutions, and information technology infrastructure services. The Company's business segments are staffing services and other". Morningstar































VOXX; "VOXX International Corp is a manufacturer and distributor in the Automotive, Premium Audio and Consumer Accessories industries. It manufactures, distributes and markets rear-seat entertainment devices, home theater systems, music systems, among others."
Morningstar






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