Orphan stock

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Orphan stock

A stock that is ignored by research analysts and as a result may be trading at low price earnings ratios.

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.
References in periodicals archive ?
NEW YORK -- NEW YORK, April 3 /PRNewswire/ -- In a sweeping 11-year analysis released today of some 5,800 orphan stocks trading under $5, New York boutique investment bank firm Crest Advisors LLC (http://www.
Orphan stocks no longer have Wall Street's support and are faced with a dizzying array of corporate governance issues thanks to new Sarbanes-Oxley legislation.
Crest Advisors' rigorous analysis points to how important an outside perspective - and subsequent action plan - can be to an orphan stock.