Is Alaska Communications Systems Group Inc (ALSK) A Good Stock To Buy?

Judging by the fact that Alaska Communications Systems Group Inc (NASDAQ:ALSK) has witnessed a falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of hedgies who were dropping their entire stakes heading into Q4. At the top of the heap, Howard Marks’s Oaktree Capital Management cut the largest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $6.1 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its stock, about $0.1 million worth of shares. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Alaska Communications Systems Group Inc (NASDAQ:ALSK). These stocks are ASB Bancorp Inc (NASDAQ:ASBB), PC Tel Inc (NASDAQ:PCTI), Olympic Steel, Inc. (NASDAQ:ZEUS), and Community Bankers Trust Corp. (NASDAQ:ESXB). This group of stocks’ market valuations resemble Alaska Communications Systems Group Inc (NASDAQ:ALSK)’s market valuation.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $3 million in Alaska Communications Systems Group Inc (NASDAQ:ALSK)’s case. Olympic Steel, Inc. (NASDAQ:ZEUS) is the most popular stock in this table. On the other hand, ASB Bancorp Inc (NASDAQ:ASBB) is the least popular one with only 4 bullish hedge fund positions. Alaska Communications Systems Group Inc (NASDAQ:ALSK) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Olympic Steel, Inc. (NASDAQ:ZEUS) might be a better candidate to consider a long position.