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5 Financial Stocks Investors Hate But Analysts Love

  +Follow December 9, 2013 8:43AM
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Here at Equities.com we take a keen interest in the disparity between what the market experts think will happen with plays, and what is actually playing out. The gulf between the analysts and the retail investors is perhaps most pronounced in the financial sector, where opaqueness can lead the two groups to take diametrically opposed positions on plays, with large groups playing long and short against each other.

As we wind down 2013 we thought it would be interesting to look to see what plays were currently splitting the investment community. That is, what financial stocks maintained high marks from analysts, yet were courting bets against them at exceedingly high rates?

To find these plays, we looked for financial stocks that could answer “yes” to the following questions:

1)      Does the stock currently have a short float of 25 percent or higher?

Plays where over 25 percent of shares are being “shorted” (or bet to fall) can definitely be considered to have an unusually high amount of investors betting against them.

2)      Does the stock currently have an analyst consensus rating of “buy” or better?

There are plenty of stocks out there that both the market and experts agree are no good. There are many that the market is actively shorting, but consensus still leans away from recommending investment. A consensus of “buy” or stringer indicates the majority of firms still believe the stoc will defy the shorters and rise in value.

Incredibly, out of all the financial sector stocks currently trading on NASDAQ or the NYSE we only found five stocks that could answer “yes” top both questions. They are:

AmTrust Financial Services, Inc. (AFSI)

Market-Cap: $3.05 billion

Price:  $41.06

P/E: 11.6

Performance YTD: +59.21

Short Float Percentage: 29.06

 

PacWest Bancorp (PACW)

Market-Cap: $1.87 billion

Price: $42.11

P/E: 27.34

Performance YTD: +75.53

Short Float Percentage: 27.92

 

PHH Corporation (PHH)

Market-Cap: $1.34 billion

Price: $23.35

P/E: 10.81

Performance YTD: +2.64

Short Float Percentage: 31.20

 

Radian Group Inc. (RDN)

Market-Cap: $2.49 billion

Price: $14.50

P/E: N/A

Performance YTD: +137.70

Short Float Percentage:  27.06

 

World Acceptance Corp. (WRLD)

Market-Cap: $1.08 billion

Price: $89.91

P/E: 10.86

Performance YTD: +20.45

Short Float Percentage: 30.11

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for AFSI
Dee
19 Dec 14 14:27:37
RT @ActivistShorts: ICYMI: Alistair Capital is short $AFSI and sent a 19-page letter to its audit committee, released earlier today http://…
Quoth the Raven
19 Dec 14 14:07:15
RT @Keubiko: Shout out to @QuoththeRavenSA for putting me on to $AFSI. #letitburn
Barbarian Capital
19 Dec 14 14:05:53
RT @ActivistShorts: ICYMI: Alistair Capital is short $AFSI and sent a 19-page letter to its audit committee, released earlier today http://…
Keubiko
19 Dec 14 13:50:00
Shout out to @QuoththeRavenSA for putting me on to $AFSI. #letitburn
Keubiko
19 Dec 14 13:49:24
RT @ActivistShorts: ICYMI: Alistair Capital is short $AFSI and sent a 19-page letter to its audit committee, released earlier today http://…
Activist Shorts
19 Dec 14 13:18:04
ICYMI: Alistair Capital is short $AFSI and sent a 19-page letter to its audit committee, released earlier today http://t.co/KlYmgCmjqm
Jay Trader
19 Dec 14 12:55:58
$AFSI calls - deep ITM. http://t.co/RKqDuWMLFX
MarketCurrents
19 Dec 14 12:22:47
Accounting issues raised at AmTrust Financial http://t.co/7XGPQAF18m $AFSI
Daily Contracts
19 Dec 14 11:22:01
Real-Time feed of company contracts, original agreements and executive updates from Amtrust Financial Services $AFSI http://t.co/UIJqGhNRp8
3904b15
19 Dec 14 10:37:14
@QuoththeRavenSA @SEC_Enforcement #restatement coming $afsi? Anyone call @bdoaccountant for comment?
3904b15
19 Dec 14 10:19:00
@SamAntar @SEC_Enforcement Does D&O protect $AFSI audit cmte if they ignore the audit committee charter? http://t.co/oWLXEHJAQ7
3904b15
19 Dec 14 10:08:47
@SamAntar If $AFSI whitewashes as you suggest, audit cmte faces risk like Agfeed Audit Cmte w/ @SEC_Enforcement http://t.co/EHzlP9GKBU
3904b15
19 Dec 14 10:04:16
@retheauditors @rapoportwsj What is protocol for auditors (@bdoaccountant) and audit committee in $AFSI situation? http://t.co/18G5re8euM
Quoth the Raven
19 Dec 14 10:02:51
Beth Malone, $AFSI's investor relation contact, never seems to pick up the phone on days when QTR has pressing questions. #interesting
3904b15
19 Dec 14 10:00:06
@QuoththeRavenSA Has anyone gotten comment from $AFSI audit committee? Very curious what they have to say...
3904b15
19 Dec 14 09:58:26
@SamAntar What would your audit committee have done if they'd gotten the $AFSI letter? http://t.co/18G5re8euM
Quoth the Raven
19 Dec 14 09:54:30
Letter to $AFSI from Alistair says "conflicting disclosures such as these indicate $AFSI's financials are not reliable."
The Specialist
19 Dec 14 09:41:12
RT @QuoththeRavenSA: Super obvious accounting errors shown in $AFSI financials. Where is @SEC_Enforcement on this? http://t.co/rdR7AdRwSZ
Gab
19 Dec 14 09:39:31
RT @QuoththeRavenSA: More $AFSI "accounting impossibilities" brought to light by Alistair. Audit committee will have to investigate, IMO. h…
Quoth the Raven
19 Dec 14 09:39:07
Super obvious accounting errors shown in $AFSI financials. Where is @SEC_Enforcement on this? http://t.co/rdR7AdRwSZ
Quoth the Raven
19 Dec 14 09:37:26
More $AFSI "accounting impossibilities" brought to light by Alistair. Audit committee will have to investigate, IMO. http://t.co/speQv2FDc7
3904b15
19 Dec 14 09:30:52
@rapoportwsj letter to $afsi audit committee seems to up your alley: http://t.co/TBbRWLkCDM
Quoth the Raven
19 Dec 14 09:28:01
BAFFLING differences on key amounts in $AFSI's 10-Q's and 8-K's. (from Alistair letter today). http://t.co/AdMxj3FLFa
3904b15
19 Dec 14 09:12:26
@valuewalk shorty writes letter to $afsi audit committee: http://t.co/TBbRWLkCDM
Quoth the Raven
19 Dec 14 09:09:58
Alistair Capital 19 page letter to $AFSI's audit committee urging investigation: http://t.co/KLBvsUnGFP
Quoth the Raven
19 Dec 14 09:07:47
Alistair Capital sends 19 pg. letter to $AFSI's audit committee urging investigation re: accounting irregularities: http://t.co/2wR4FFCVuP
Briefing.com
19 Dec 14 09:02:13
$AFSI: Amtrust Financial: Alistair Capital delivers letter to the Audit Committee of AFSI; Believes AmTrust's... http://t.co/zHH16EuUxw
3904b15
19 Dec 14 08:58:10
@QuoththeRavenSA Interesting move re $afsi audit committee- http://t.co/TBbRWLkCDM
3904b15
19 Dec 14 08:57:15
@max02050 @retheauditors @TomMasonSNL @footnoted How will $AFSI audit committee respond?
Investors Hangout
19 Dec 14 08:56:12
Jake13: $AFSI Opinion Click here to find out if $AFSI is http://t.co/tpRFEWRNxL
Investors Hangout
19 Dec 14 08:56:08
Jake13: $AFSI Opinion Click here to find out if $AFSI is http://t.co/8t4hOjw2hc
max0205
19 Dec 14 08:51:52
RT @TomMasonSNL: Alistair letter to $AFSI http://t.co/JcgpK8Kup1 Looks like same short thesis. But summons for defamation against Alistair,…
iHangout
19 Dec 14 08:43:34
Jake13: The Hunt for the Next 10 Bagger: $AFSI Opinion Click here to find out if $AFSI is http://t.co/rtwqkkgh1S
Jake13
19 Dec 14 08:40:10
$AFSI Opinion Click here to find out if $AFSI is a buy hold or sell. Watching these stocks. $X $XLV $SDRL $GAL http://t.co/JGP8P2HBgH
Peter Bardens
19 Dec 14 08:03:43
$AFSI Alistair Capital Delivers Letter to AmTrust Financial Services, Inc.'s Audit ... http://t.co/h6V4pGiHPu
Andy
19 Dec 14 07:26:22
$spy $afsi lost its squeez momentum after ugly news. so think will move down into around 56 bxu area till eod
Andy
19 Dec 14 07:25:56
$spy $afsi shorting more
Andy
19 Dec 14 07:20:46
$spy $afsi but think htis time it will work. will short more below 57
Andy
19 Dec 14 07:20:31
$spy $afsi goes down. afsi didn't move back at all. news about it is pretty heavy. just dommage that we heard those in the past already.
Investors Hangout
19 Dec 14 07:20:14
clayton: $AFSI 57.61 http://t.co/aiplzm16qB
Investors Hangout
19 Dec 14 07:20:09
clayton: $AFSI 57.61 http://t.co/jhamh2mrZS
Andy
19 Dec 14 07:20:03
$spy $afsi why I think short will work: daily chart only up. those kidn of stocks are checked by smart/big shorts when overall market goes
Andy
19 Dec 14 07:14:17
$spy $afsi adding last part short. stop 59. smaller size play do to no charts, no env. etc.....
Tom Mason
19 Dec 14 07:13:44
Alistair letter to $AFSI http://t.co/JcgpK8Kup1 Looks like same short thesis. But summons for defamation against Alistair, Geo is new to me
Hitthebid01
19 Dec 14 07:08:06
$AFSI Alistair Capital describes at length what appear to be significant accounting irregularities at AmTrust
Andy
19 Dec 14 07:07:12
$spy $afsi ready to sclae in till 58. stock has a history... but thinking baout time here etc. - should mvoe lower this time
Andy
19 Dec 14 07:04:12
$spy $afsi news about internal control deficencies or so. should bring it at least 1 bux lower
Andy
19 Dec 14 07:03:21
$spy $afsi shorting more here above 57, should move down.
Andy
19 Dec 14 07:01:50
$spy $afsi shorting more here
chartguy89
19 Dec 14 06:59:01
KMI Stock Chart $KMI $RSX $AFSI $IBB http://t.co/1UV0vYLir5 http://t.co/qTlc2xCVWF
				
				
  +Follow December 9, 2013 8:43AM
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