orphan

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

orphan

Of or relating to a security that is not regularly covered by security analysts. An orphan security is likely to attract little investor interest and to sell at a relatively low price compared with other securities of the same type. For example, an orphan stock is likely to sell at a low price-earnings ratio and an orphan bond will offer a relatively high yield.
Case Study Many individuals in the financial community believe investment banking firms have an obligation to provide continuing research coverage of companies they take public. Research coverage increases a firm's exposure to the investment community, an important benefit for the firm and its shareholders, especially investors who acquired stock during the initial public offering. Dropping coverage of a small company and causing the stock to become an orphan can have a devastating effect on the stock's liquidity and market price. In some instances coverage is discontinued because of a loss of investor interest, in which case any remaining investor interest can virtually disappear. Orphan stocks became more common in the tech stock meltdown of 2000-01. In October 2001 Credit Suisse First Boston dropped coverage of Evolve Software, a software and fiber optics company that CSFB took public for $9 a share in August 2000. Although the stock quickly tripled in price following the initial public offering, it soon got caught in the downdraft of the bear market for technology stocks and had declined to approximately 25¢ per share by the time CSFB dropped its coverage of the firm. The analyst at Credit Suisse First Boston remained bullish on the stock until coverage was suddenly dropped a little more than a year after his firm managed the initial public offering.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
In this coming-of-age movie, orphanhood removes obstacles to exploring non-hetero-normative sexual identity, since the "law of the father" and the desirability of mirroring inherited gender roles wane after Sebastian and Helena's mother passes.
It can thus be concluded that orphanhood impacts negatively on the school experiences of orphans and is the girl child who is worse affected.
In the 10 countries for which data on orphanhood were available, 7% of respondents were maternal orphans; the proportion was lowest in Liberia (4%) and highest in Zimbabwe (17%).
He called for renouncing tribal violence in Darfur in order to reduce the number of orphans in the restive region, saying that tribal fighting is the major source of orphanhood in South Darfur.
poverty, armed violence, lack of educational or employment opportunities, orphanhood, displacement and exposure to disease) that make children vulnerable for use by armed groups exists in each of the major areas where piracy is currently reported.
"Escape is not the way," Laci proclaims as he realizes that to stay "sane" and balanced he must stop his ceaseless travels from one country to another, from one continent to another, and make a concerted effort to suspend, at least temporarily, his state of "permanent transience"--a phrase Andre Aciman uses to describe the exilic predicament--and start listening carefully to his mother's life story of dispossession, dislocation, abandonment and orphanhood before she succumbs to uterine cancer.
Direct costs include those related to maintaining a system for investigating and responding to allegations of maltreatment, abandonment, and orphanhood; operating costs of judicial law enforcement; and health systems.
Deon Movies, Inequalities in Education: Effects of Gender, Poverty, Orphanhood, and Disability (ch.6) in Mercy Tembon and Lucia Fort (Ed., 2008), Girls' Education in the 21st Century.
Yet to her lasting credit, those interests never overshadow her own natural acumen for producing ambitious and highly independent close readings of salient issues (such as the poet's portrayal of national identity and alienation, deviation from societal norms, madness, orphanhood, otherness, and repression), in her own terms.
"The Poetics of Orphanhood: Wordsworth's 'Salisbury Plain,' 'The Vale of Esthwaite,' and 'Tintern Abbey.'" Romanticism 14, no.