ABIOMED, Inc. (ABMD)

[chmcnfunds]

Hedge Funds Are Buying These 5 Highly Shorted And Oversold Stocks

January 19, 2013
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

If you are interested in potentially underestimated stocks, here is a list that may give some interesting ideas.

We ran a screen on stocks that are being targeted by short sellers, with short floats above 10%, and that are also technically oversold (with RSI(14) below 40).

Next we screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

(click below for chart)

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

1. Abiomed Inc. (ABMD): Engages in the research, development, and sale of medical devices that provide circulatory support to acute heart failure patients across the continuum of care in heart recovery. Market cap at $509.76M, most recent closing price at $12.85. Net institutional purchases in the current quarter at 2.5M shares, which represents about 7.2% of the company's float of 34.72M shares. RSI (14) at 37.75, and short float at 21.88%. The 2 top holders of the stock are Primecap Management, and Wellington Management.
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http://seekingalpha.com/article/1121601-hedge-funds-are-buying-these-5-highly-shorted-and-oversold-stocks

ABMD