Six Beaten-Down Shares Ready to Rally

02/17/2011 7:00 am EST

Focus: STOCKS

Rising call volume suggests these shares—some of them household names—could be primed to move higher from levels near 52-week lows.

Today we review a list of six companies trading 0-10% above their 52-week lows. All of these stocks have seen a recent decrease in the put/call ratio, which is based on open interest of option contracts.

In addition, the put/call ratios of these companies are at the lower end of their annual ranges.

With the number of call option contracts growing so rapidly relative to put option contracts, these stocks may be set for a rally.

The list has been sorted by the change in the put/call ratio.

Campbell Soup Co. (CPB): Processed and packaged goods industry. Market cap of $11.48 billion. This stock is currently trading 8.71% above its 52-week low. Current put/call ratio is at 0.44 versus previous put/call ratio at 0.65 (a 32.31% decrease). Short float is at 9.68%, which implies a short ratio of 8.45 days. The stock has gained 7.53% over the last year.

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Allos Therapeutics, Inc. (ALTH): Drug manufacturer. Market cap of $351.87 million. This stock is currently trading 4.4% above its 52-week low. Current put/call ratio is at 0.26 versus previous put/call ratio at 0.37 (a 29.73% decrease). Short float at 9.37%, which implies a short ratio of 7.47 days. The stock has lost 53.68% over the last year.

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Dolby Laboratories Inc. (DLB): Diversified electronics industry. Market cap of $6.03 billion. This stock is currently trading 3.09% above its 52-week low. Current put/call ratio is at 0.88 versus previous put/call ratio at 1.08 (an 18.52% decrease). Short float is at 4.39%, which implies a short ratio of 3.97 days. The stock has gained 1.36% over the last year.

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Rigel Pharmaceuticals, Inc. (RIGL): Drug manufacturer. Market cap of $348.88 million. This stock is currently trading 9.63% above its 52-week low. Current put/call ratio is at 0.12 versus previous put/call ratio at 0.14 (a 14.29% decrease). Short float at 4.25%, which implies a short ratio of 10.35 days. The stock has lost 29.06% over the last year.

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Westamerica Bancorp. (WABC): Regional bank. Market cap of $1.48 billion. This stock is currently trading 4.73% above its 52-week low. Current put/call ratio is at 0.65 versus previous put/call ratio at 0.73 (a 10.96% decrease). Short float is at 9.84%, which implies a short ratio of 14.11 days. The stock has lost 0.51% over the last year.

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Cisco Systems, Inc. (CSCO): Networking and communication devices industry. Market cap of $103.65 billion. This stock is currently trading 1.07% above its 52-week low. Current put/call ratio is at 0.61 versus previous put/call ratio at 0.68 (a 10.29% decrease). Short float is at 0.71%, which implies a short ratio of 0.51 days. The stock has lost 21.3% over the last year.

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By the Staff at Kapitall.com

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