"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 sell-off 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, prompting buyers' bid prices to 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. Once we've compiled this shopping list of potential picks, we'll check them against the collective intelligence of Motley Fool CAPS.

Today's contenders include:


Recent Price

CAPS Rating
(out of 5)

Longtop Financial Technologies  (NYSE:LFT)



Osiris Therapeutics (NASDAQ:OSIR)



Doral Financial  (NYSE:DRL)



Children's Place Retail Stores



American Woodmark 



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

Up on Wall Street, the investment bankers just can't unload these stocks fast enough. And truth be told, Fools aren't all that keen on them either -- with one exception.

You've all heard how China is going to change the world, right? Well, according to some of the brightest lights on CAPS, Longtop Financial Technologies is the company that will lead the charge to change one small corner of the world: banking. In China.

The bull case for Longtop Financial Technologies 
As far back as two years ago, boofooty was praising Longtop for its "[g]ood earnings, solid customers base [and] 10+ years business experience ... in China." But who is Longtop, exactly? And what does it do? 8side enlightens us: "Longtop (LFT) provides computer systems to Chinese banking organizations. The relationships that get these systems sold ensure long-term profitability and strong margins. These guys are on a roll."

AZdab agrees. While online banking and billpay may be old hat already to Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) here in the States, "[o]nline Banking in China is only now beginning, and [Longtop] is a solution." From ATM software to online banking and "customer relationship management," Longtop does it all -- and for some of China's biggest names, including Ping An Insurance, China Development Bank, and the Bank of China.

And while you might expect a relatively small shop like Longtop to wilt under the pressure of competing with the likes of IBM (NYSE:IBM) and Accenture (NYSE:ACN), the truth is that this company has thrived. Sales have compounded at 70%, on average, over the past couple of years, and profit has gone through the roof -- up nearly 300% per annum!

Now, you probably wouldn't expect to be able to buy such tremendous growth at a bargain price -- and you'd be right. No company can grow at triple-digit rates forever (cf. Google), and analysts are expecting Longtop's long-term growth to decelerate to 25% per year in short order. This makes the stock's 30 P/E look a bit expensive, its accomplishments to-date notwithstanding.

If you ask me, that's too high a price to pay. Investing in China has its attractions, sure, but it also carries greater risks than you find in more mature markets. For that reason, I'd suggest waiting for a wider margin of safety before diving into this stock. The fact that the ever-ebullient Wall Streeters are getting nervous about Longtop just adds to my concern.

Time to chime in
But hey, that's just my opinion. In contrast, the vast majority of CAPS members who look at this stock like what they see -- and perhaps you do, too. If you've got a contrary opinion on Longtop, I'd love to hear it. Post your thoughts below, or even better ... click on over to Motley Fool CAPS and tell everyone what you think about Longtop.

Motley Fool CAPS : It's fun, it's free, and it just might make you famous.

Accenture is a Motley Fool Inside Value recommendation.

Fool contributor Rich Smith does not own shares of, nor is he short, any company named above. You can find him on CAPS, publicly pontificating under the handle TMFDitty, where he's currently ranked No. 598 out of more than 140,000 members. The Fool has a disclosure policy.