Report
Dave Nicoski ...
  • Ross LaDuke

Vermilion Booster Shots: Attractive bottom-fishing stocks

For investors looking for bottom-fishing candidates; stocks that are breaking downtrends, exhibiting ascending reaction lows, and showing stabilizing relative strength.
Underlyings
Ambac Financial Group Inc.

Ambac Financial Group is a financial service holding company. The company's provides financial guarantee policies through its principal operating subsidiary, Ambac Assurance Corporation and its wholly owned subsidiary Ambac Assurance UK Limited. The company has another wholly-owned subsidiary, Everspan Financial Guarantee Corp. Through its subsidiaries, the company operates in one business segment: financial guarantee insurance, which consists of insurance policies issued provide an unconditional and irrevocable guarantee which protects the holder of a debt obligation against non-payment when due of the principal and interest on the obligations guaranteed.

Archrock Inc.

Archrock is an energy infrastructure company with a pure-play focus on midstream natural gas compression. The company is the provider of natural gas compression services to customers in the oil and natural gas industry and a supplier of aftermarket services to customers that own compression equipment. The company has two primary business segments: Contract Operations, which provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers' natural gas compression needs; and Aftermarket Services, which sells parts and components and provides operation, maintenance, overhaul and reconfiguration services to customers who own compression equipment.

Ascena Retail Group Inc.

Ascena Retail Group is a specialty retailer of apparel for women and tween girls. The company has four operating segments: Premium Fashion, which consists of the Ann Taylor and LOFT brands; Value Fashion, which consists of the maurices and dressbarn brands; Plus Fashion, which consists of the Lane Bryant and Catherines brands; and Kids Fashion, which consists of the Justice brand. All of the company's segments sell fashion merchandise to the women's and girls' apparel market across a range of ages, sizes and demographics.

Cato Corporation Class A

Cato is a fashion retailer which operates under the names Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro and Versona. The Cato concept provides fashion apparel and accessories in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature an assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry and handbags. The It's Fashion and It's Fashion Metro concepts provide fashion with styles for the family. The Versona concept's stores and e-commerce website provide fashion apparel items, jewelry and accessories. The company also provides its own credit card and layaway plan.

Chesapeake Energy Corporation

Chesapeake Energy is a holding company. Through its subsidiaries, the company is an independent exploration and production company engaged in the acquisition, exploration and development of properties to produce oil, natural gas and natural gas liquid from underground reservoirs. The company owns a portfolio of onshore U.S. liquids and natural gas assets. The company has positions in the resource plays of the Eagle Ford Shale in South Texas, the stacked pay in the Powder River Basin in Wyoming and the Anadarko Basin in northwestern Oklahoma. The company's natural gas resource plays are the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana.

CIRCOR International Inc.

CIRCOR International designs, manufactures and markets technology products and sub-systems for markets including industrial, oil and gas, aerospace and defense, and commercial marine. The company has the following reportable business segments: Energy, which provides integrated flow control solutions, valves and services for the oil & gas and process Instrumentation markets; Aerospace & Defense, which provides valves, pumps, actuation, motors, switches, and high pressure pneumatic systems; and Indusrial, which positive displacement pumps, specialty centrifugal pumps, automatic recirculating valves, control valves, and harsh environment flow control products for steam and cryogenic applications.

Clean Energy Fuels

Clean Energy Fuels is a provider of natural gas as an alternative fuel for vehicle fleets in the U.S. and Canada. The company is engaged in supplying renewable natural gas, compressed natural gas (CNG) and liquefied natural gas (LNG) for light, medium and heavy-duty vehicles and providing operation and maintenance services for vehicle fleet customer stations. The company also, among others, designs, builds, operates and maintains fueling stations; sells and services natural gas fueling compressors and other equipment used in CNG stations and LNG stations; and provides assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities.

Contango Oil & Gas Co.

Contango Oil & Gas is an independent oil and natural gas company. The company's business is focused on the production from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas and Wyoming. The company is also engaged in the exploration, development, exploitation, production, and acquisition of crude oil and natural gas properties in West Texas, the onshore Texas Gulf Coast and the Rocky Mountain regions of the United States.

El Pollo Loco Holdings Inc

El Pollo Loco Holdings is a holding company. Through its subsidiary, El Pollo Loco, Inc., the company develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco ?. The restaurants, which are located principally in California but also in Arizona, Nevada, Texas, Utah and Louisiana, engaged in flame-grilled chicken in a variety of contemporary Mexican-influenced entrees, including chicken burritos, chicken quesadillas, chicken tortilla soup, variations on its Pollo Bowl? and Pollo Salads. The company serves individual and family-sized chicken meals, a variety of Mexican-inspired entrees, and sides, and, on a limited-time basis, additional proteins like shrimp.

Energy XXI Gulf Coast Inc

Energy XXI Gulf Coast is engaged in the acquisition, exploration, development and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico Shelf, which is an area in less than 1,000 feet of water (GoM Shelf). As of Dec 31 2016, the company owned and operated nine GoM Shelf oil fields. As of the same date, the company's total proved reserves were 121.9 million barrels of oil equivalent of which 81.0% were oil and 70.0% were classified as proved developed. The total proved reserves consisted of 95.2 million barrels of gas, 3.1 million barrels of natural gas liquids, and 141.24billion cubic feet of natural gas.

EnerSys

EnerSys is a manufacturer, marketer and distributor of industrial batteries. The company also manufactures, markets and distributes products such as battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures. The company's product lines are: reserve power products, which are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and other specialty power applications; and motive power products, which are used to provide power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications.

Essendant Inc.

Essendant is a holding company. Through its subsidiaries, the company is engaged as a wholesale distributor of workplace items including janitorial, foodservice and breakroom supplies, technology products, office products, industrial supplies, cut sheet paper products, automotive products and office furniture. The company provides brand products within each of its product categories including Universal

Frank's International NV

Genesis Healthcare

Genesis Healthcare is a holding company. The company's services focus primarily on the medical and physical issues facing elderly patients and are provided by its nursing facilities, assisted/senior living communities, integrated and third-party rehabilitation therapy business, and other ancillary services. The company's reportable operating segments comprised of: inpatient services, which includes the operation of skilled nursing facilities and assisted/senior living facilities; rehabilitation therapy services, which includes the company's third-party rehabilitation and respiratory therapy services; and other services, which provides a range of other medical services, including physician services.

Green Plains Inc.

Green Plains is a holding company. Through its subsidiaries, the company is an ethanol producer. The company has four operating segments: ethanol production, which includes the production of ethanol, distillers grains and corn oil; agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil, natural gas and other commodities; food and ingredients, which includes cattle feeding and food-grade corn oil operations; and partnership, which includes fuel storage and transportation services.

Innophos Holdings Inc.

Innophos Holdings is a holding company. Through its subsidiaries, the company is a producer of specialty ingredient solutions for the food, health, nutrition and industrial markets. The company has three principal product lines within its segments: Specialty Ingredients, which consists of specialty phosphate products, specialty phosphoric acids, including polyphosphoric acid, and a range of other mineral, enzyme and botanical based specialty ingredients; Core Ingredients, which includes food grade purified phosphoric acid (PPA), technical grade PPA, sodium tripolyphosphate, and detergent grade PPA; and Co-Products and Other, which includes granular triple super phosphate and merchant green phosphoric acid.

John B. Sanfilippo & Son Inc.

Sanfilippo (John B.) & Son is a processor and distributor of tree nuts and peanuts. The company's principal products are raw and processed nuts. The nut product line includes almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts and filberts. The company also markets and distributes, and in various cases processes and manufactures, other food and snack products. These other products include snack mixes, salad toppings, snacks, dried fruit and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, snack mixes, candy and confections, corn snacks, sesame sticks and other sesame snack products.

K2M Group Holdings Inc.

K2M Group Holdings is a medical device provider focused on designing, developing and commercializing spine and minimally invasive spine (MIS) technologies and techniques. The company's spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. The company has applied its product development in spine technologies and techniques to a number of MIS products, which consist of implants, disposables and instruments that are marketed and sold to hospitals for use by spine surgeons. As of Dec 31 2017, the company's product portfolio contains 99 product lines that are used in complex spine, MIS and degenerative surgeries.

Key Energy Svcs

Key Energy Services is an onshore, rig-based well servicing contractor. The company's business segments are: Rig Services, which includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives; Fishing and Rental Services, which provides fishing services and rental equipment; Coiled Tubing Services, which involves the use of a continuous metal pipe spooled onto a reel to deploy into oil and natural gas wells to perform various applications; and Fluid Management Services, which provides transportation and well-site storage services for various fluids.

Nabors Industries Ltd.

Nabors Industries, through its subsidiaries, owns and operates land-based drilling rig fleet and is a provider of offshore platform drilling rigs in the U.S. and several international markets. The company also provides directional drilling services, tubular services, performance tools, and technologies for its own rig fleet and those of third parties. The company's business is comprised of its land-based and offshore drilling rig operations and other rig related services and technologies, consisting of equipment manufacturing, rig instrumentation and optimization software. The company has five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions and Rig Technologies.

NanoString Technologies

NanoString Technologies develops, manufactures and sells products that unlock scientifically and clinically actionable information from minute amounts of biological material. The company has two commercially available product platform, its nCounter Analysis System and its GeoMx Digital Spatial Profiling (DSP) system, both of which include instruments and related consumables. nCounter can be used to analyze the activity of up to 800 genes in a single experiment. GeoMx DSP is designed to enable the field of spatial genomics and is used to analyze specifically selected regions of a biological sample in order to see how gene activity might vary across those regions or in certain cell types.

Sabre Corp.

Sabre is a technology solutions provider to the travel and tourism industry. The company operates through three business segments: Travel Network, which consists primarily of its global distribution system (GDS) and a range of solutions that integrate with its GDS; Airline Solutions, which provides a portfolio of software technology products and solutions, through software-as-a-service (SaaS) and hosted delivery model, to airlines and other travel suppliers and provides software solutions; and Hospitality Solutions, which provides software and solutions, through SaaS and hosted delivery model, to hoteliers around the world.

Schlumberger NV

Schlumberger provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The company has four segments: Reservoir Characterization, which consists of the principal technologies involved in finding and defining hydrocarbon resources; Drilling, which consists of the principal technologies involved in the drilling and positioning of oil and gas wells; Production, which consists of the principal technologies involved in the lifetime production of oil and gas reservoirs; and Cameron, which consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.

Shiloh Industries Inc.

Shiloh Industries is a solutions provider focusing on lightweighting technologies. The company's multi-component, multi-material solutions are comprised of a variety of alloys in aluminum, magnesium and steel grades, along with its proprietary line of noise and vibration reducing ShilohCore? acoustic laminate products. The company delivers these solutions in body structure, chassis and propulsion systems to original equipment manufacturers and Tier 1 suppliers in the automotive and commercial vehicle markets. The company produces electric vehicles structural products such as charger boxes, control boxes, motor housings, battery covers, battery box trays and battery box rails.

South Jersey Industries Inc.

South Jersey Industries is a holding company. The company provides a variety of energy-related products and services through its subsidiaries. The company's subsidiary, SJI Utilities, Inc. owns South Jersey Gas Company, a regulated natural gas utility which distributes natural gas in the southernmost counties of New Jersey; Elizabethtown Gas Company, a regulated natural gas utility which distributes natural gas in northern and central New Jersey; and Elkton Gas Company, a regulated natural gas utility which distributes natural gas in northern Maryland. The company also operates through its other subsidiaries, among other, South Jersey Energy Company, which acquires and markets electricity to retail end users.

Superior Energy Services Inc.

Superior Energy Services provide services and products to the energy industry. The company serves national and independent oil and natural gas exploration and production companies around the world. The company reports its operating results in four business segments: Drilling Products and Services, which include downhole drilling tools and surface rentals; Onshore Completion and Workover Services, which include pressure pumping, fluid management and workover services; Production Services, which include intervention services used to maintain and extend oil and gas production; and Technical Solutions, which include include completion tools and services, well control services and subsea well intervention.

Tompkins Financial Corporation

Tompkins Financial is a bank holding company. Through its subsidiaries, the company provides an array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance. The company's Trust company, Tompkins Trust Company, provides an array of trust and investment services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. The company operates in three business segments: banking, insurance and wealth management.

Ultragenyx Pharmaceutical Inc.

Ultragenyx Pharmaceutical is a biopharmaceutical company focused on the identification, acquisition, development, and commercialization of products for the treatment of genetic diseases. The company's product categories are: biologics, which include Crysvita? (burosumab) for the treatment of X-linked hypophosphatemia and Mepsevii? (vestronidase alfa) for the treatment of Mucopolysaccharidosis VII; small molecules, which includes UX007 for the treatment of long-chain fatty acid oxidation disorders; and gene therapy, which includes DTX301 for the treatment of patients with ornithine transcarbamylase deficiency and DTX401 for the treatment of patients with glycogen storage disease type Ia.

Weis Markets Inc.

Weis Markets is engaged in the retail sale of food in Pennsylvania. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands including natural, gluten-free and organic varieties. All retail food store locations operate as conventional supermarkets. The company utilizes a loyalty marketing program, Weis Club Preferred Shopper, which enable customers to receive discounts, promotions and fuel rewards.

Wright Medical Group NV

Wright Medical Group is a medical device company focused on extremities and biologics products. Co.'s product categories are: upper extremities, which include joint implants and bone fixation devices for the shoulder, elbow, wrist, and hand; lower extremities, which include joint implants and bone fixation devices for the foot and ankle; biologics, which include products used to support treatment of damaged or diseased bone, tendons, and soft tissues or to stimulate bone growth; and sports medicine and other, which include products used across several anatomic sites to mechanically repair tissue-to-tissue or tissue-to-bone injuries and other ancillary products.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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