bottom fishing

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Bottom Fishing

An investment strategy in which one buys high-risk stocks in companies that have recently dropped dramatically in price. The investor buys the stock in the belief that the drop is due to panic selling, rather than a serious fault in the company, and that the company will recover. The number of bottom fishers may increase in a prolonged bear market. See also: Distressed securities.

bottom fishing

Used to refer to the activity of investing in securities when it is believed the market has reached bottom following a major decline.

Bottom fishing.

Investors using a bottom-fishing strategy look for stocks that they consider undervalued because the prices are low.

The logic of bottom fishing is that stock prices sometimes fall further than a company's actual financial situation warrants, especially in the aftermath of bad news. Bottom-fishing investors hope the stock will rebound dramatically and provide a healthy profit.

References in periodicals archive ?
The effect of bottom fishing on the diversity of noncolonial species is also examined.
The best part of bottom fishing in Florida is never knowing what will bite next.
A go-to bait for bottom fishing out here is big pinfish.
The most productive method, usually, is trolling, but flatlining baits while bottom fishing can work well, too.
Shrieking gulls and terns won't have any impact on the bottom fishing efforts, but if you're free lining livies, the constant pecking will dissuade interested fish and kill your bait.
I will then go about bottom fishing, making sure to always keep a close eye on what the bait is doing.
This prevents them from swimming in a hole or under a ledge as they do when conventional bottom fishing.
Catch some blue runners and you have prime flat line baits for smoker kings if you're bottom fishing.
There's also news on the deep bottom fishing for snowy grouper, another great fishery to target during the last, calm days of summer, when trolling action slows.
Bottom fishing in September may not sound super appealing to you, but it's one of the few months of the year that you can target and take three favorite reef fish: snapper, grouper and amberjack.
During the rest of the morning, Greg and his wife Kristen, along with William McAvoy, Mike and Cory Brandt, enjoyed some of Amelia Island's best bottom fishing action.
Short bottom fishing trips, in fact, from the late afternoon until sunset can pay a good return on the time spent.