Pozen Inc. (POZN)

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Fearful Stocks for Greedy Investors

http://www.fool.com/investing/general/2010/06/11/fearful-stocks-for-greedy-investors.aspx

Rich Smith (TMFDitty)
June 11, 2010

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." -- Warren Buffett

Of all the Oracle of Omaha's orations, this one holds a special place in Foolish investors' hearts. When looking to bag a bargain, a panicked selloff by jittery investors offers you a great chance to snap up stocks on the cheap.

In the short term, professional traders' pessimism can become a self-fulfilling prophecy. Desperate institutions lower their asking prices to get rid of a stock, and buyers' bid prices fall in tandem, creating the very price decline that both sides feared in the first place -- until the selling stops.

Until it does, savvy investors can get greedy, snapping up bargains from these fearful sellers. (Assuming they really are bargains.) In today's column, we'll see which stocks Wall Street's motivated sellers are most frantic to unload -- and whether you should buy 'em:

Companies
(removed other tickers as this will be deleted for spam)

Recent Price


*****

Pozen (Nasdaq: POZN)


$7.29


**

Companies are selected from the "Institutional Ownership Down Last Month" list published on MSN Money after close of trading on Thursday. Recent price provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.

Wall Street vs. Main Street
Up on Wall Street, traders are dumping these stocks just as fast as they can. But down here on Main Street, each still has its fans.

Take Valhi, for example. It's a diversified conglomerate involved in everything from pigments to pin-tumbler locks, not to mention waste management. And CAPS member dermagenex thinks it's Door No. 3 that holds the key to Valhi's success: "nuclear energy is the future. The only roadblock to nuclear has been 'what to do with the waste?'" [and] … VHI is on the verge of taking care of it," having secured a license to open a radioactive waste disposal facility in Texas early next year.

Sound good? Well, according to drobuck340, the story at Pozen is even better. This one's a "great stock," and it seems the Food and Drug Administration agrees. On April 30, the FDA gave Pozen's arthritis drug Vimovo its stamp of approval, triggering a $20 million milestone payment from partner AstraZeneca and, in the minds of some investors, setting the stage for a buyout.