orphan

(redirected from orphans)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 classic literature ?
Charles Weston was a distant relative of the good aunt, and was, like Julia, an orphan, who was moderately endowed with the goods of fortune.
We have orphans, I know,' pursued Mr Milvey, quite with the air as if he might have added, 'in stock,' and quite as anxiously as if there were great competition in the business and he were afraid of losing an order, 'over at the clay-pits; but they are employed by relations or friends, and I am afraid it would come at last to a transaction in the way of barter.
And being led and tempted on by this remorseful thought into a condition which the evil-minded class before referred to would term the maudlin state or stage of drunkenness, it occurred to Mr Swiveller to cast his hat upon the ground, and moan, crying aloud that he was an unhappy orphan, and that if he had not been an unhappy orphan things had never come to this.
Men are hard-hearted, and kind angels only Watch o'er the steps of a poor orphan child.
She herself knows nothing, but that she was left an orphan and I adopted her.
He threw himself, therefore, into the love for his little Jehan with the passion of a character already profound, ardent, concentrated; that poor frail creature, pretty, fair- haired, rosy, and curly,--that orphan with another orphan for his only support, touched him to the bottom of his heart; and grave thinker as he was, he set to meditating upon Jehan with an infinite compassion.
Would you believe," said the mistress of the house, suddenly addressing the prince, "would you believe that that man has not even spared my orphan children?
Dolokhov was a suitable and in some respects a brilliant match for the dowerless, orphan girl.
As a sort of atonement she wrote 'Day after Day,' the story of a dismal and joyless orphan, who dies to the sound of angelic music, faint and farheard, filling the whole chamber.
You decline to help the poor little orphan child of the village organist, and secretly you have her brought up in your own home, and stop the sale of your pictures for the sake of the child whom you had only once contemptuously addressed.
We have seen that Rosa and the tulip, like two orphan sisters, had been left by Prince William of Orange at the house of the President van Systens.
Because," replied the Man, "the Baby belongs to the Orphan Asylum.