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The stock market has seen a considerable sell off for six weeks in a row. This has caused some major declines in many stocks, especially for companies in the small cap sector. Many of them have reached oversold levels and are being priced as if there is no future potential. In the past few years, it has usually paid off to buy these types of market corrections and sell into the rallies. With that in mind, the companies below have seen a sharp drop in their stock price and may warrant consideration at these levels. Since the market correction in these stocks or the market in general could continue, it always makes sense to buy in stages so you can take advantage of any further dips in the stock price. Here are the stocks:

American Superconductor (NASDAQ:AMSC) is trading at about $7.94. These shares have a relative strength index of about 28, which indicates the shares are oversold. These shares have a 52 week range of $7.54 and $38.88. The 50 day moving average is $11.48 and the 200 day moving average is $25.35, so the shares are trading well below these key support levels. Earnings estimates for AMSC are about 60 cents per share in 2011. Book value is stated at $9.86 per share.

Why American Superconductor could rebound: According to the latest data on shortsqueeze.com, there are about 11.3 million shares short. Based on recent volume of 1.3 million shares traded per day, it would take about 8 days worth of volume to match the number of shares short. This stock fell when a major customer refused shipments, however this company has quality products and technology which be in demand in the long run. I think it makes sense to buy a little here for the long run and possibly more on any further dips since it is hard to say if these shares have bottomed.

Tata Motors Ltd., (NYSE:TTM) shares are trading at $21.85. These shares have a relative strength index of 19, which indicates the shares are very oversold levels. Tata is a major automobile maker with brand like Jaguar and Land Rover, and is based in India. The 50 day moving average is $25.95 and the 200 day moving average is $26.88. Earnings estimates for TTM are at $2.97 per share in 2011, and $3.42 for 2012. The 52 week range is $16.45 to $37.65.

Why Tata Motors shares could rebound: It might be awhile before this stock rebounds, but the shares are worth watching and buying in stages over time in case they dip lower. The shares started dropping around May 26, 2011 from about the $25 level after the company reported earnings.

Cenveo, Inc., (NYSE:CVO) is trading around $6.11. CVO is a printing company, based in Connecticut. The 50 day moving average is $6.30 and the 200 day moving average is $5.81. These shares have traded in a range between $4.80 to $7.61 in the last 52 weeks. There have been multiple insiders buying including the CEO, officers, and directors, with the most recent purchase being an officer who bought 17,000 shares, which has a transaction value of about $100,000. You can see the repeated insider buying over the past few months here.

Why Cenveo shares could rebound: Before the recession, these shares traded for over $20 per share. It looks like insiders must be seeing the possibility of a turnaround for the printing business. The CVO balance sheet has a significant amount of debt and this company has recently been reporting losses, which concerns me, but I think these shares are worth watching due to the insider buying.

Chimera Investment Corporation (NYSE:CIM) is trading around $3.54. Chimera is a real estate investment trust and is based in New York. These shares have traded in a range between $3.37 to $4.36 in the last 52 weeks. The 50 day moving average is $3.88 and the 200 day moving average is $3.88. CIM is estimated to earn about 60 cents per share in 2011. Insiders have been buying, you can see that here.

Why Chimera shares could rebound: CIM pays a solid dividend of 56 cents per share which is equivalent to a 15.8% yield. The book value is stated at $3.45. These shares declined last week from about the $3.80 level and look like a bargain now.

Coeur d'Alene Mines Corporation (NYSE:CDE) is trading at $23.80. CDE is a silver and precious metals company based in Idaho. These shares have a 52 week range of $14.02 and $37.59. The 50 day moving average is $28.68 and the 200 day moving average is $25.67. Earnings estimates for CDE are for a profit $3.11 per share in 2011, and profits of $3.33 per share in 2012.

Why Coeur d'Alene shares could rebound: These shares are oversold and look cheap around these levels. It makes sense to buy in stages, and see over time if these shares have truly bottomed out. Insiders recently bought shares around $26 per share. See that buying here.

The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.

Source: Rebound Potential: 5 Stocks That Have Been Left for Dead