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If you think the market's recent pullback presents a buying opportunity, then you may find this article to be an interesting starting point for potential contrarian positions.

To construct this list we looked for stocks with market caps above $300M with the following characteristics:

- Trading 0-10% above the 52-week low
- Experiencing increasing short interest, over the month of May
- And net institutional selling over the current quarter

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.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Given this information, which of these stocks are you most bullish about?

1. Aeropostale, Inc. (NYSE:ARO): Apparel Stores Industry. Market cap of $1.40B. This stock is trading 1.41% above its 52-week low. Shorted shares have increased by 3.21%, from 5.00M to 7.57M shorted shares. On a net basis, institutional investors sold 10.1M shares during the current quarter. Might be undervalued at current levels, with a PEG ratio at 0.62, and P/FCF ratio at 9.9. The stock has performed poorly over the last month, losing 19.7%.

2. Northwest Natural Gas Company (NYSE:NWN): Gas Utilities Industry. Market cap of $1.17B. This stock is trading 7.06% above its 52-week low. Shorted shares have increased by 1.85%, from 1.76M to 2.25M shorted shares. On a net basis, institutional investors sold 374.0K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 8.5% (equivalent to 16.94 days of average volume). The stock has gained 2.88% over the last year.

3. Homex Development Corp. (NYSE:HXM):
Property Management Industry. Market cap of $1.25B. This stock is trading 1.18% above its 52-week low. Shorted shares have increased by 1.66%, from 1.36M to 1.99M shorted shares. On a net basis, institutional investors sold 12.7K shares during the current quarter. This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock is a short squeeze candidate, with a short float at 5.47% (equivalent to 9.76 days of average volume).

4. MedAssets, Inc. (NASDAQ:MDAS): Healthcare Information Services Industry. Market cap of $757.83M. This stock is trading 2.68% above its 52-week low. Shorted shares have increased by 1.42%, from 3.70M to 4.41M shorted shares. On a net basis, institutional investors sold 4.4M shares during the current quarter. The stock is a short squeeze candidate, with a short float at 8.74% (equivalent to 6.5 days of average volume). It's been a rough couple of days for the stock, losing 7.84% over the last week.

5. Rambus Inc. (NASDAQ:RMBS):
Semiconductor Industry. Market cap of $1.46B. This stock is trading 2.97% above its 52-week low. Shorted shares have increased by 1.37%, from 5.65M to 6.88M shorted shares. On a net basis, institutional investors sold 1.5M shares during the current quarter. The stock has performed poorly over the last month, losing 28.07%.

6. Canadian Solar Inc. (NASDAQ:CSIQ): Semiconductor Industry. Market cap of $383.06M. This stock is trading 8.12% above its 52-week low. Shorted shares have increased by 1.35%, from 4.61M to 5.01M shorted shares. On a net basis, institutional investors sold 2.3M shares during the current quarter. This is a risky stock that is significantly more volatile than the overall market (beta = 3.26). It's been a rough couple of days for the stock, losing 7.85% over the last week.

7. Urban Outfitters Inc. (NASDAQ:URBN): Apparel Stores Industry. Market cap of $4.64B. This stock is trading 2.81% above its 52-week low. Shorted shares have increased by 1.34%, from 15.97M to 17.58M shorted shares. On a net basis, institutional investors sold 13.6M shares during the current quarter. The stock has performed poorly over the last month, losing 11.68%.

8. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Lodging Industry. Market cap of $1.40B. This stock is trading 5.09% above its 52-week low. Shorted shares have increased by 1.2%, from 2.69M to 2.93M shorted shares. On a net basis, institutional investors sold 546.1K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 7.2% (equivalent to 6.31 days of average volume). It's been a rough couple of days for the stock, losing 13.2% over the last week.

9. Ship Finance International Limited (NYSE:SFL):
Shipping Industry. Market cap of $1.34B. This stock is trading 9.14% above its 52-week low. Shorted shares have increased by 1.14%, from 2.99M to 3.50M shorted shares. On a net basis, institutional investors sold 111.7K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 6.86% (equivalent to 10.49 days of average volume). It's been a rough couple of days for the stock, losing 8.23% over the last week.

10. Brookline Bancorp, Inc. (NASDAQ:BRKL):
Savings & Loans Industry. Market cap of $495.01M. This stock is trading 0.85% above its 52-week low. Shorted shares have increased by 1.1%, from 4.20M to 4.82M shorted shares. On a net basis, institutional investors sold 72.0K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 8.48% (equivalent to 10.44 days of average volume). The stock has lost 7.61% over the last year.

11. Mindray Medical International Limited (NYSE:MR): Medical Instruments & Supplies Industry. Market cap of $3.19B. This stock is trading 9.18% above its 52-week low. Shorted shares have increased by 1.09%, from 13.55M to 14.42M shorted shares. On a net basis, institutional investors sold -2.4M shares during the current quarter. The stock is a short squeeze candidate, with a short float at 17.36% (equivalent to 18.19 days of average volume).

12. Investment Technology Group Inc. (NYSE:ITG):
Investment Brokerage Industry. Market cap of $556.46M. This stock is trading 2.67% above its 52-week low. Shorted shares have increased by 0.64%, from 2.65M to 2.91M shorted shares. On a net basis, institutional investors sold 206.0K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 7.11% (equivalent to 7.13 days of average volume). The stock has performed poorly over the last month, losing 12.63%.

13. Enzon Pharmaceuticals Inc. (NASDAQ:ENZN): Biotechnology Industry. Market cap of $538.91M. This stock is trading 1.7% above its 52-week low. Shorted shares have increased by 0.62%, from 6.06M to 6.26M shorted shares. On a net basis, institutional investors sold 4.0M shares during the current quarter. The stock is a short squeeze candidate, with a short float at 11.86% (equivalent to 12.99 days of average volume). The stock has performed poorly over the last month, losing 13.05%.

14. DreamWorks Animation SKG Inc. (NASDAQ:DWA): Movie Production, Theaters Industry. Market cap of $1.77B. This stock is trading 0.71% above its 52-week low. Shorted shares have increased by 0.55%, from 6.24M to 6.60M shorted shares. On a net basis, institutional investors sold 137.3K shares during the current quarter. The stock is a short squeeze candidate, with a short float at 10.% (equivalent to 6.31 days of average volume).

15. SBA Communications Corp. (NASDAQ:SBAC):
Rental & Leasing Services Industry. Market cap of $4.17B. This stock is trading 9.68% above its 52-week low. Shorted shares have increased by 0.51%, from 10.74M to 11.31M shorted shares. On a net basis, institutional investors sold 2.6M shares during the current quarter. The stock is a short squeeze candidate, with a short float at 10.11% (equivalent to 7.74 days of average volume).

*Data sourced from Yahoo! Finance, Fidelity and Finviz.

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

Source: 15 Stocks Reaching Lows, Dragged Down by Extreme Pessimism