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 ?
78) BAAF, Policy Statement on Intercountry Adoption (1998); Department of Health, Guide to Intercountry Adoption Practice and Procedures (1997) para.
It's assumed the districts examine materials themselves to make purchasing decisions, he says, adding that adoption report details have been pared down because more detailed ones had been used illegally for marketing purposes.
Newcastle City Council's Adoption Unit event is being held to give people a chance to find out more about adoption and what is involved in the adoption process.
8 board meeting, the Financial Accounting Standards Board (FASB) voted to defer adoption of FIN 46, Consolidation of Variable Interest Entities, for all VIEs or potential VIEs created before Feb.
With a $500,000 grant from the federal government, the Snowflakes Embryo Adoption Program is fueling up a public awareness campaign that aims to increase the number of frozen embryos--leftover from in vitro fertilization (IVF) attempts--that will be implanted in the womb of an adoptive mother instead of destroyed or used for research.
INTERRACIAL INTIMACIES: Sex, Marriage, Identity, and Adoption by Randall Kennedy Pantheon Books, $30.
For Christine and Lance Hart, who adopted five children from the foster care system, adoption assistance payments help finance treatment for their children's asthma, attention deficit medications, counseling sessions and private school.
2005-31, superseding Notice 2003-15, provides a safe harbor for determining the finality of the adoption of a foreign-born child for purposes of the Sec.
Well-regarded sociologist Barbara Katz Rothman makes this amply clear in her highly readable book, which considers the historical, sociological and personal dimensions of transracial adoption.
The changes aimed to prepare the children for adoption by cutting off access with the birth mother.
For more and more people in today's society, adoption is no longer a theological category but a fact of life.
November is National Adoption Awareness Month, celebrated by presidential proclamation and activities throughout the country.