We are constantly on the search for company stock prices that react negatively to good news.  These type of overreactions are often the result of market gyrations or investors not digesting the full scope of a particular news event. In the beginning of 2016, we decided to bring “buy on pullback” mock portfolios to you that take advantage of these mispricing scenarios.

We constructed our first mock portfolio on January 19 2016 in the midst of the market correction that negatively affected quality stocks, pushing them to prices that were attractive to us.  This mock portfolio returned around 36% at its peak within 3 months.

Now that Q1 2016 earnings season has basically come to an end and with over 1000 micro caps having reported their financials, it’s time to make a wish list of companies whose stocks either declined or had muted reactions to positive earnings results.

So let’s get right down to business.  We are now initiating Mock Portfolio 2.0 with the following three stocks…

Update 6/1/2016 – BG Staffing Inc  (AMEX:BGSF) already disclosed.

To access all three symbols, go here.