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Fearful Stocks for Greedy Investors
By Rich Smith (TMFDitty)
November 3, 2008 Comment (0) 1
Recommendation
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett
Of all of the Oracle of Omaha's orations, this one holds a special place in Foolish investors' hearts. When you're looking to bag a bargain, a panicked sell-off by jittery investors gives you a great chance to capture stocks on the cheap.
In the short term, professional traders' pessimism can become a self-fulfilling prophecy. When desperate institutions lower their asking prices to get rid of a stock, buyers' bid prices fall in tandem and create the very price decline that both sides feared in the first place -- until the selling stops.
Until it does, savvy investors can "get greedy" and grab bargains -- assuming they really are bargains -- from these fearful sellers. 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: ENGlobal (Nasdaq: ENG)
Recent Price: $4.00
CAPS Rating (5 Max): *****
.....
http://www.fool.com/investing/general/2008/11/03/fearful-stocks-for-greedy-investors.aspx
By Rich Smith (TMFDitty)
November 3, 2008 Comment (0) 1
Recommendation
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett
Of all of the Oracle of Omaha's orations, this one holds a special place in Foolish investors' hearts. When you're looking to bag a bargain, a panicked sell-off by jittery investors gives you a great chance to capture stocks on the cheap.
In the short term, professional traders' pessimism can become a self-fulfilling prophecy. When desperate institutions lower their asking prices to get rid of a stock, buyers' bid prices fall in tandem and create the very price decline that both sides feared in the first place -- until the selling stops.
Until it does, savvy investors can "get greedy" and grab bargains -- assuming they really are bargains -- from these fearful sellers. 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: ENGlobal (Nasdaq: ENG)
Recent Price: $4.00
CAPS Rating (5 Max): *****
.....
http://www.fool.com/investing/general/2008/11/03/fearful-stocks-for-greedy-investors.aspx
