orphan

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Related to adoption: open adoption, Adoption Process

Orphan Stock

A stock that is not often tracked by analysts. This may be because it is not very well known or because it belongs to an industry that is generally performing poorly. As a result these stocks have low demand and often a low price. Some value investors recommend buying orphan stocks because they could be undervalued. However, because demand is low, orphan stocks have low trading volume and a small change in demand may result in volatility in price. An orphan stock is also called a wallflower.

orphan

Of or relating to a security that is not regularly covered by security analysts. An orphan security is likely to attract little investor interest and to sell at a relatively low price compared with other securities of the same type. For example, an orphan stock is likely to sell at a low price-earnings ratio and an orphan bond will offer a relatively high yield.
Case Study Many individuals in the financial community believe investment banking firms have an obligation to provide continuing research coverage of companies they take public. Research coverage increases a firm's exposure to the investment community, an important benefit for the firm and its shareholders, especially investors who acquired stock during the initial public offering. Dropping coverage of a small company and causing the stock to become an orphan can have a devastating effect on the stock's liquidity and market price. In some instances coverage is discontinued because of a loss of investor interest, in which case any remaining investor interest can virtually disappear. Orphan stocks became more common in the tech stock meltdown of 2000-01. In October 2001 Credit Suisse First Boston dropped coverage of Evolve Software, a software and fiber optics company that CSFB took public for $9 a share in August 2000. Although the stock quickly tripled in price following the initial public offering, it soon got caught in the downdraft of the bear market for technology stocks and had declined to approximately 25¢ per share by the time CSFB dropped its coverage of the firm. The analyst at Credit Suisse First Boston remained bullish on the stock until coverage was suddenly dropped a little more than a year after his firm managed the initial public offering.
References in periodicals archive ?
This year, the special focus of National Adoption Month is older youth waiting to be adopted.
And with so much included, a $50 adoption fee is a truly spook-tacular deal
CA is responsible for the day-to-day oversight of intercountry adoption matters involving the United States and implementation of the convention in the United States.
Suddenly, adoption agencies from coast to coast were swamped with inquiries from a concerned public, excited about the opportunity to cuddle babies in need.
However, the number of adoptions came down to 4,354 in 201
Magnotti began helping children and families with adoptions in 2007 when he took a position with Antioch Adoptions in Redmond.
The process of finalizing the adoption took longer than usual due to some legal issues and was "a difficult road with lots of ups and downs.
Adoption experts say there is a desperate need for more people to come forward to provide "forever families" - and adoption teams across Teesside hope the increased attention on adoption, thanks to the recent National Adoption Week, will provide inspiration to people to consider adoption.
So I became an Adoption Champion for the charity, the British Association for Adoption & Fostering.
Help make a difference to a child's life - become an Adoption Champion.
The event will take place in the Adoption Resource Centre, Langley Moor, next Wednesday, where social workers will be available to offer advice along with adoptive parents who can share their experiences.