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Stock prices remain under pressure, but several observers have pointed out that we might be approaching a short-term rally from oversold conditions.

So we're wondering: which stocks are expected to see the biggest bounce from such a scenario?

To create this list, we started with a list of stocks that are oversold, according to the Relative Strength, or RSI(14), indicator.

We scanned 13-F filings, and identified which of these companies have seen significant levels of institutional selling during the most recent quarter.

Big money managers have been dumping these oversold shares -- is this excessive pessimism justified? Use this list as a starting point for your own ideas.


(Click to enlarge)

Sorted by the RSI(14) indicator.

1. SK Telecom Co. Ltd. (NYSE:SKM): Provides wireless telecommunications services using code division multiple access and wide-band CDMA technologies. Market cap at $7.6B, most recent closing price at $11.67. RSI(14) indicator at 17.48. Net institutional sales in the current quarter at -351.8M shares, which represents about 83.65% of the company's float of 420.57M shares.

2. Education Management Corporation (NASDAQ:EDMC): Provides post-secondary education in North America. Market cap at $1.13B, most recent closing price at $8.54. RSI(14) indicator at 17.76. Net institutional sales in the current quarter at -2.2M shares, which represents about 11.85% of the company's float of 18.56M shares.

3. TelefonicaBrasil, S.A. (NYSE:VIV): Market cap at $27.78B, most recent closing price at $24.68. RSI(14) indicator at 20.06. Net institutional sales in the current quarter at -19.4M shares, which represents about 6.62% of the company's float of 293.17M shares.

4. Savient Pharmaceuticals, Inc. (SVNT): Focuses on developing KRYSTEXXA, a biologic PEGylateduricase in the United States. Market cap at $55.74M, most recent closing price at $0.77. RSI(14) indicator at 21.49. Net institutional sales in the current quarter at -3.3M shares, which represents about 6.5% of the company's float of 50.77M shares.

5. Jaguar Mining Inc. (JAG): Engages in the production of gold, as well as in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. Market cap at $104.67M, most recent closing price at $1.24. RSI(14) indicator at 21.51. Net institutional sales in the current quarter at -6.4M shares, which represents about 7.92% of the company's float of 80.84M shares.

6. Farmer Brothers Co. (NASDAQ:FARM): Engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. Market cap at $112.66M, most recent closing price at $6.92. RSI(14) indicator at 23.12. Net institutional sales in the current quarter at -348.3K shares, which represents about 5.88% of the company's float of 5.92M shares.

7. Abercrombie & Fitch Co. (NYSE:ANF): Operates as a specialty retailer of casual apparel for men, women, and kids. Market cap at $3.B, most recent closing price at $35.34. RSI(14) indicator at 23.21. Net institutional sales in the current quarter at -7.2M shares, which represents about 8.62% of the company's float of 83.56M shares.

8. Myrexis, Inc. (OTCPK:MYRX): Engages in discovering, developing, and commercializing small molecule drugs for the treatment of cancer. Market cap at $66.56M, most recent closing price at $2.49. RSI(14) indicator at 23.6. Net institutional sales in the current quarter at -1.1M shares, which represents about 5.1% of the company's float of 21.55M shares.

9. Xerium Technologies Inc. (NYSE:XRM): Engages in the manufacture and supply of consumable products used in the production of paper primarily in North America, Europe, South America, and the Asia-Pacific. Market cap at $59.09M, most recent closing price at $3.88. RSI(14) indicator at 24.04. Net institutional sales in the current quarter at -1.0M shares, which represents about 9.51% of the company's float of 10.52M shares.

10. Freescale Semiconductor Holdings I, Ltd. (NYSE:FSL): Engages in processing semiconductors and solutions for automotive, networking, industrial, and consumer markets worldwide. Market cap at $2.43B, most recent closing price at $9.86. RSI(14) indicator at 24.16. Net institutional sales in the current quarter at -4.4M shares, which represents about 8.79% of the company's float of 50.05M shares.

11. Christopher & Banks Corporation (NYSE:CBK): Operates as a retailer of women's apparel in the United States. Market cap at $52.1M, most recent closing price at $1.42. RSI(14) indicator at 24.21. Net institutional sales in the current quarter at -2.2M shares, which represents about 7.08% of the company's float of 31.07M shares.

12. Avid Technology, Inc. (NASDAQ:AVID): Provides digital media content-creation products and solutions for film, video, audio, and broadcast professionals, as well as artists and home enthusiasts. Market cap at $273.36M, most recent closing price at $7.06. RSI(14) indicator at 24.72. Net institutional sales in the current quarter at -1.6M shares, which represents about 5.33% of the company's float of 30.03M shares.

13. CEVA Inc. (NASDAQ:CEVA): Engages in designing and licensing silicon intellectual property for the handsets, portable multimedia, and consumer electronics markets. Market cap at $361.92M, most recent closing price at $15.60. RSI(14) indicator at 25.23. Net institutional sales in the current quarter at -1.8M shares, which represents about 7.84% of the company's float of 22.95M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: Contrarian Ideas: Are These Stocks Being Dragged Down By Excessive Pessimism?