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Do you prefer stocks trading at low share prices? If so, one thing to keep in mind is the possibility of "value traps," or stocks that appear to hold value with low share prices but in fact are trading there for a negative reason.

For ideas on how to avoid potential value traps, we ran a screen. We screened for stocks with market caps above $300 million trading under $5 a share for those with significant net institutional purchases over the current quarter (i.e. buying in the fourth quarter of 2011 reported over the last three months), indicating institutional investors such as hedge fund managers expect these names to outperform.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.

1. Cadence Pharmaceuticals Inc. (CADX): Focuses on in-licensing, developing, and commercializing product candidates principally for use in the hospital setting in the United States and Canada. Price at $3.59. Net institutional purchases in the current quarter at 11.4M shares, which represents about 20.28% of the company's float of 56.22M shares.

2. CIBER, Inc. (CBR): Operates as an information technology consulting, services, and outsourcing company worldwide. Price at $4.26. Net institutional purchases in the current quarter at 3.0M shares, which represents about 4.6% of the company's float of 65.28M shares.

3. Clearwire Corporation (CLWR): Provides wireless broadband services. Price at $2.17. Net institutional purchases in the current quarter at 149.3M shares, which represents about 41.65% of the company's float of 358.44M shares.

4. Cumulus Media Inc. (CMLS): Engages in the acquisition, operation, and development of commercial radio stations in the United States. Price at $3.56. Net institutional purchases in the current quarter at 10.5M shares, which represents about 18.27% of the company's float of 57.46M shares.

5. Corinthian Colleges Inc. (COCO): Operates as a post-secondary career education company in the United States and Canada. Price at $4.10. Net institutional purchases in the current quarter at 3.1M shares, which represents about 4.03% of the company's float of 76.98M shares.

6. Cell Therapeutics, Inc. (CTIC): Engages in the development, acquisition, and commercialization of drugs for the treatment of cancer. Price at $1.30. Net institutional purchases in the current quarter at 20.6M shares, which represents about 11.93% of the company's float of 172.74M shares.

7. Dynavax Technologies Corporation (DVAX): Discovers and develops novel products to prevent and treat infectious diseases. Price at $4.90. Net institutional purchases in the current quarter at 34.7M shares, which represents about 25.24% of the company's float of 137.49M shares.

8. Glu Mobile, Inc. (GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Price at $4.72. Net institutional purchases in the current quarter at 6.1M shares, which represents about 12.26% of the company's float of 49.77M shares.

9. Heckmann Corporation (HEK): Acquires or makes investments in various businesses. Price at $4.41. Net institutional purchases in the current quarter at 7.4M shares, which represents about 7.03% of the company's float of 105.30M shares.

10. Hercules Offshore, Inc. (HERO): Provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U. Price at $4.61. Net institutional purchases in the current quarter at 9.8M shares, which represents about 7.42% of the company's float of 132.16M shares.

11. LDK Solar Co., Ltd. (LDK): Engages in the design, development, manufacture, and marketing of photovoltaic products; and development of power plant projects. Price at $4.14. Net institutional purchases in the current quarter at 2.5M shares, which represents about 3.97% of the company's float of 63.05M shares.

12. Lexicon Pharmaceuticals, Inc. (LXRX): Focuses on the discovery and development of drug candidates for the treatment of various human diseases. Price at $1.87. Net institutional purchases in the current quarter at 140.2M shares, which represents about 70.72% of the company's float of 198.25M shares.

13. MGIC Investment Corp. (MTG): Provides private mortgage insurance to the home mortgage lending industry in the United States. Price at $4.90. Net institutional purchases in the current quarter at 28.6M shares, which represents about 14.62% of the company's float of 195.57M shares.

14. Orexigen Therapeutics, Inc. (OREX): Focuses on the development of pharmaceutical product candidates for the treatment of obesity. Price at $4.62. Net institutional purchases in the current quarter at 12.0M shares, which represents about 22.03% of the company's float of 54.47M shares.

15. Pendrell Corporation (PCO): Provides corporate intellectual property solutions and litigation insights to Fortune 500 companies and technology firms worldwide. Price at $2.58. Net institutional purchases in the current quarter at 11.1M shares, which represents about 7.49% of the company's float of 148.18M shares.

16. Power-One Inc. (PWER): Designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other technology markets. Price at $4.39. Net institutional purchases in the current quarter at 17.9M shares, which represents about 17.89% of the company's float of 100.03M shares.

17. Rite Aid Corp. (RAD): Operates retail drugstores in the United States. Price at $1.75. Net institutional purchases in the current quarter at 32.9M shares, which represents about 5.04% of the company's float of 652.53M shares.

18. Rentech, Inc. (RTK): Provides alternative and clean energy solutions; and manufactures and sells nitrogen fertilizer products. Price at $2.07. Net institutional purchases in the current quarter at 28.2M shares, which represents about 12.71% of the company's float of 221.79M shares.

Institutional data sourced from Fidelity; all other data sourced from Finviz.

Source: 18 Stocks Under $5 Being Bought Up By Hedge Funds