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 ?
In 1954 he added the Special Situations Survey, a monthly focusing, each issue, on one stock that they regarded as a "special situation" that would do well during, say, the following 18 to 24 months.
NEW YORK -- Mount Kellett Capital Management (Mount Kellett) announced today the recent completion of fundraising for its second private special situation and opportunistic investment fund, Mount Kellett Capital Partners II.
BOSTON, MA: Mack-Cali Realty Corporation announced that, in a joint venture with JPMorgan Chase's Special Situation Property Fund and Gale International, it has acquired a stake in a seven-building class A office and office/r&d portfolio in the Boston suburbs.
Perison and his team have successfully arranged multiple special situation financings and have a proven track record of achieving exceptional results for their clients.
a registered fund, to provide capital for investment in a variety of special situation real estate opportunities.
This hybrid real estate fund allows us to continue utilizing a flexible approach in response to diverse special situation opportunities," commented Garfield.
Lenders focused on the financing of special situation real estate transactions, such as distressed debt purchases, will find more opportunities to deploy capital in the upcoming higher interest rate environment.
a registered fund that provides capital for investment in a variety of special situation real estate opportunities.
is focused on distressed debt securities, special situation equities and private loans/notes in a predominantly long-only strategy.
With the ability to provide capital through a broad array of securities including senior and subordinated debt, equity, Debtor-in Possession (DIP) facilities, and special situation loans, Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position.
Global Banking News-May 2, 2013--Goldman names special situations group head(C)2013 ENPublishing - http://www.
Abu Dhabi Capital Management I(ADCM) is opening an office in the Dubai International Financial Centre to market and advise the firm's funds: ADCM Special Situations 1; Qannas Investments Limited; and ADCM Special Situations II.
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