Buy on the bad news

Buy on the bad news

Buying stock shortly after a price drop resulting from bad news from the company. Investors believe that the price has hit bottom and will trend upward. See: Bottom fisher.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Buy on the Bad News

Informal; to buy a stock after its price has recently declined because of a negative rumor or report. One buys on the bad news when one assumes that the recent price decline has resulted in an undervalued stock. That is, one buys with the hope that the price will recover. However, it carries the risk that the stock will continue to decline.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved