"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
arebargains.) 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)
SandRidge Energy (NYSE:
SD)
$9.44
*****
SunPower Corporation (Nasdaq:
SPWRA)
$21.06
***
STEC (Nasdaq: STEC)
$12.53
***
Microvision  (Nasdaq:
MVIS)
$3.43
***
Pacific Sunwear (Nasdaq:
PSUN)
$3.53
** Continued... |