"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." -- Warren Buffett
Of all the Oracle of Omaha's orations, this one holds a special place in Foolish investors' hearts. When looking to bag a bargain, a panicked sell-off by jittery investors offers you a great chance to snap up stocks on the cheap.
In the short term, professional traders' pessimism can become a self-fulfilling prophecy. Desperate institutions lower their asking prices to get rid of a stock, prompting buyers' bid prices to fall in tandem, creating the very price decline that both sides feared in the first place -- until the selling stops.
Until it does, savvy investors can "get greedy," snapping up bargains from these fearful sellers. (Assuming they really are bargains.) In today's column, we'll see which stocks Wall Street's motivated sellers are most frantic to unload. Once we've compiled this shopping list of potential picks, we'll check them against the collective intelligence of Motley Fool CAPS.
Today's contenders include:
Stock
Recent Price
CAPS Rating (out of 5 stars)
Learning Tree (Nasdaq: LTRE)
$8.84
****
Agnico-Eagle Mines (NYSE: AEM)
$46.34
***
Sequenom (Nasdaq: SQNM)
$4.05
***
Burger King (NYSE: BKC)
$17.89
**
KeyCorp (NYSE: KEY) Continued... |