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If you're interested in going against the crowd, the following list might offer an interesting starting point.

To create this list, we started with a universe of about 250 oversold stocks, according to the Relative Strength, or RSI(14), index. All of the stocks mentioned below have RSI(14) readings below 30, which usually signals oversold conditions.

To refine the screen, we scanned institutional money flows, and identified the oversold names that have seen the largest percentage of institutional selling during 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.

Click to enlarge

Big money managers are bearish on these names, and technical indicators suggest they are oversold. Is this extreme pessimism warranted?

If you're a contrarian, this extreme negativity might raise a flag. (Note: Data sourced on Friday afternoon, Aug 26).

1. Net 1 Ueps Technologies Inc. (NASDAQ:UEPS): Business Services Industry. Market cap of $321.51M. RSI(14) at 27.18. Net institutional shares sold over the current quarter at 2.6M, which is 6.87% of the company's 37.86M share float.

2. Monster Worldwide, Inc. (NYSE:MWW): Advertising Agencies Industry. Market cap of $932.68M. RSI(14) at 28.14. Net institutional shares sold over the current quarter at 6.3M, which is 5.28% of the company's 119.35M share float. The stock is a short squeeze candidate, with a short float at 13.88% (equivalent to 5.17 days of average volume).

3. Education Management Corporation (NASDAQ:EDMC): Education and Training Services Industry. Market cap of $2.08B. RSI(14) at 20.92. Net institutional shares sold over the current quarter at 4.1M, which is 5.08% of the company's 80.71M share float. Might be undervalued at current levels, with a PEG ratio at 0.66, and P/FCF ratio at 6.53.

4. Frontline Ltd. (NYSE:FRO): Shipping Industry. Market cap of $504.53M. RSI(14) at 24.07. Net institutional shares sold over the current quarter at 2.5M, which is 4.85% of the company's 51.52M share float. The stock is a short squeeze candidate, with a short float at 21.57% (equivalent to 5.31 days of average volume).

5. PAA Natural Gas Storage, L.P. (NYSE:PNG): Gas Utilities Industry. Market cap of $1.0B. RSI(14) at 11.74. Net institutional shares sold over the current quarter at 1.2M, which is 4.70% of the company's 25.55M share float.

6. Sealed Air Corporation (NYSE:SEE): Packaging and Containers Industry. Market cap of $2.74B. RSI(14) at 29.14. Net institutional shares sold over the current quarter at 6.1M, which is 3.90% of the company's 156.47M share float.

7. CoreLogic, Inc. (NYSE:CLGX): Property and Casualty Insurance Industry. Market cap of $882.14M. RSI(14) at 24.73. Net institutional shares sold over the current quarter at 3.7M, which is 3.89% of the company's 95.23M share float.

8. Hewlett-Packard Company (NYSE:HPQ): Diversified Computer Systems Industry. Market cap of $51.92B. RSI(14) at 27.68. Net institutional shares sold over the current quarter at 67.6M, which is 3.27% of the company's 2.07B share float. Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 6.24.

*Institutional trading data sourced from Fidelity. RSI(14) data sourced from Finviz.

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

Source: Contrarian Ideas: Oversold Stocks Being Dumped By Big Money Managers