special situation

Special Situation

An occurrence that may lead an investor to trade a particular security, usually to make a short-term gain. For example, if a company announces an earnings surprise, an investor may buy its stock in the hope of selling it later in the trading day for a higher price. Other examples of special situations include mergers and acquisitions and bankruptcy.

special situation

A currently undervalued stock that can suddenly increase in value because of imminently favorable circumstances. For example, a firm may be about to bring a new, potentially profitable product to market. If everything turns out favorably, the gains in the firm's stock could be quite large. Another special situation might derive from the impending liquidation of a company. Special situations are usually quite risky.

Special situation.

An undervalued stock that one or more analysts expects to increase in price in the very near future because of an anticipated -- and welcome -- change within the company is known as a special situation.

That change could be the introduction of a major new product, a corporate restructuring, or anything else that has the potential to increase earnings.

In some cases, the fact that a stock is identified as a special situation creates a flurry of investor interest and actually helps drive the price up even before the change has had time to take effect.

A stock that is extremely volatile over the short term because of important recent news about the company, such as a takeover or spin-off, is also described as a special situation.

References in periodicals archive ?
Plainfield Special Situations Master Fund Limited is a private investment fund specializing in special situation, event and distressed securities, managed by Plainfield Asset Management LLC, a Greenwich, Connecticut-based registered investment adviser founded by Max Holmes in February 2005.
During the month of November 2015 Fidelity China Special Situations PLC did not issue or repurchase any of its own shares.
Morgan Stanley Real Estate announced that it has successfully completed the closing of the third offering for its Special Situations Fund III, raising an additional $2.
NEW YORK -- KPMG Corporate Finance LLC, a full service, independent, middle-market investment bank, announced that Lorie Beers has joined the firm's Special Situations Advisory Group as managing director.
During the month of October 2015 Fidelity China Special Situations PLC did not issue or repurchase any of its own shares.
Ashcroft") from KPS Special Situations Funds ("KPS").
During the month of September 2015 Fidelity China Special Situations PLC repurchased 100,000 Ordinary shares into Treasury.
During the month of August 2015 Fidelity China Special Situations PLC repurchased 400,000 Ordinary shares into Treasury.
KPS Special Situations Funds are a family of private equity funds with over $600 million of committed capital focused on constructive investing in restructurings, turnarounds, and other special situations including divestitures and spin-offs.
During the month of July 2015 Fidelity China Special Situations PLC repurchased 2,600,000 Ordinary shares into Treasury.
para]]Fidelity China Special Situations PLC[[/para]]
On September 22, 2005 RAB Special Situations (Master) Fund Limited (RAB Special Situations) announced, among other things, that it had acquired 25 million warrants of HudBay through the facilities of the Toronto Stock Exchange.
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