Is Supercom Ltd (SPCB) A Good Stock To Buy?

Seeing as Supercom Ltd (NASDAQ:SPCB) has faced a bearish sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of money managers that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Jeffrey Moskowitz’s Harvey Partners said goodbye to the biggest stake of the 700 funds monitored by Insider Monkey, valued at close to $3.2 million in stock. Mark Coe’s fund, Coe Capital Management, also dropped its stock, about $1 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Supercom Ltd (NASDAQ:SPCB) but similarly valued. We will take a look at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), Veracyte Inc (NASDAQ:VCYT), Cadiz Inc (NASDAQ:CDZI), and Layne Christensen Company (NASDAQ:LAYN). This group of stocks’ market values are closest to Supercom Ltd (NASDAQ:SPCB)’s market value.

As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $7 million in Supercom Ltd (NASDAQ:SPCB)’s case. Consumer Portfolio Services, Inc. (NASDAQ:CPSS) is the most popular stock in this table. On the other hand, Cadiz Inc (NASDAQ:CDZI) is the least popular one with only 6 bullish hedge fund positions. Supercom Ltd (NASDAQ:SPCB) 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, Consumer Portfolio Services, Inc. (NASDAQ:CPSS) might be a better candidate to consider a long position.