9 Stocks Under $5 Dragged Down by Institutional Selling

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 |  Includes: CORT, COWN, HERO, IDIX, NBGGY, NOK, RBYCF, WL, WTSL
by: Kapitall

The following is a list of stocks under $5. All of these companies have seen significant institutional selling over the last three months.

Is the "smart money" underestimating these companies? What do you think? Full details below.

Institutional data sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the change in institutional ownership.

1. Hercules Offshore, Inc. (NASDAQ:HERO): Oil & Gas Drilling & Exploration Industry. Market cap of $368.44M. Price at $3.16. Institutional investors currently own 65,242,146 shares vs. 69,100,060 shares held three months ago (-5.58% change). Short float at 6.94%, which implies a short ratio of 2.69 days. The stock has lost -32.28% over the last year.

- Recent Developments: Announced that it has appointed Stephen M. Butz as CFO (May 2010).

2. Cowen Group, Inc. (NASDAQ:COWN): Investment Brokerage Industry. Market cap of $342.41M. Price at $4.55. Institutional investors currently own 69,916,867 shares vs. 73,625,498 shares held three months ago (-5.04% change). Short float at 2.57%, which implies a short ratio of 12.51 days. The stock has lost -11.84% over the last year.

- Recent Developments: Announced launch of Credit Fixed Income Group with Kevin Reynolds as Head of the Group (January 2010).

3. Wilmington Trust Corporation (NYSE:WL): Regional Bank. Market cap of $398.85M. Price at $4.38. Institutional investors currently own 73,840,110 shares vs. 76,427,270 shares held three months ago (-3.39% change). Short float at 3.05%, which implies a short ratio of 0.89 days. The stock has lost -70.52% over the last year.

- Recent Developments: Stull, Stull, and Brody announced investigation of potential ERISA violations by WL (Jan 2010). Kaplan Fox & Kilsheimer LLP announced filing a class action lawsuit against WL (December 2010).

4. Alcatel-Lucent (ALU): Communication Equipment Industry. Market cap of $7.37B. Price at $3.27. Institutional investors currently own 364,957,313 shares vs. 375,826,767 shares held three months ago (-2.89% change). Short float at 1.08%, which implies a short ratio of 1.51 days. The stock has lost -2.98% over the last year.

- Recent Developments: Agreed to pay $137M to the SEC and DOJ to settle charges (December 2010). Awarded a 5-year contract from Sprint Nextel Corp. (December 2010).

5. Wet Seal Inc. (WTSLA): Apparel Stores Industry. Market cap of $361.4M. Price at $3.57. Institutional investors currently own 80,049,990 shares vs. 82,186,674 shares held three months ago (-2.60% change). Short float at 2.97%, which implies a short ratio of 2.29 days. The stock has gained 0.56% over the last year.

- Recent Developments: Announced naming Susan P. McGalla as CEO (Jan 2011). Announced Q4 2010 EPS guidance to be on the low end of guidance range (January 2011).

6. Rubicon Minerals Corporation (RBY): Gold Industry. Market cap of $1.02B. Price at $4.60. Institutional investors currently own 82,986,368 shares vs. 84,543,486 shares held three months ago (-1.84% change). Short float at 0.35%, which implies a short ratio of 0.44 days. The stock has gained 7.21% over the last year.

- Recent Developments: None

7. Corcept Therapeutics Inc. (NASDAQ:CORT): Biotechnology Industry. Market cap of $300.38M. Price at $4.09. Institutional investors currently own 43,227,373 shares vs. 44,015,189 shares held three months ago (-1.79% change). Short float at 4.17%, which implies a short ratio of 6.29 days. The stock has gained 54.85% over the last year.

- Recent Developments: Announced positive results of the key secondary endpoint in the Phase 3 study of drug CORLUX (January 2011).

8. Idenix Pharmaceuticals Inc. (NASDAQ:IDIX): Biotechnology Industry. Market cap of $343.69M. Price at $4.61. Institutional investors currently own 30,345,716 shares vs. 30,736,526 shares held three months ago (-1.27% change). Short float at 6.7%, which implies a short ratio of 13.87 days. The stock has gained 70.65% over the last year.

- Recent Developments: Ronald C. Renaud, Jr. named President, CEO, and Director (October 2010).

9. National Bank of Greece SA (NBG): Money Center Banks Industry. Market cap of $5.65B. Price at $1.86. Institutional investors currently own 52,537,951 shares vs. 53,089,409 shares held three months ago (-1.04% change). Short float at 0.15%, which implies a short ratio of 0.74 days. The stock has lost -59.28% over the last year.

- Recent Developments: European Bank for Reconstruction and Development to provide EUR 350M of funding to NBG to support liquidity in Bulgaria, Romania, and Serbia (December 2010).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.