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.

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.
References in periodicals archive ?
Second, orphanhood data were available for only about half of the included countries; however, supplemental analyses indicated that inclusion or exclusion of the orphanhood variable did not affect the other estimates.
In spite of this, and unlike the narrators of Ishiguro's previous four novels, Christopher Banks is actively engaged in his own personal quest to overcome his feeling of orphanhood.
8) Sorrow brings to life an image self to struggle with bereavement and orphanhood.
One point that is different here is the additional emphasis on orphanhood.
Exile is merely a particular mode of the more generalized homelessness and orphanhood of the writer.
Educational consequences of orphanhood and poverty in western Kenya.
By the mid-1960s, the world of institutional orphanhood gradually took another tack, shifting to small group homes and foster care models.
The reasons for such children's initial admission included parental incapacity, desertion, orphanhood and such like.
In his essay, "Reflections on Exile," Said mentions how the exilic condition can be a "kind of orphanhood," where exiles always feel their difference (182).
Albanian orphan, 11-year-old Guinness Ahmed, who loves reciting and memorising poetry and Anasheed in both Arabic and Albanian, stressed that the financial sponsorship received from QC provides him with a variety of help in both his home and school life, as well as easing the burden on his mother, and compensating for his feelings of orphanhood.
Topics covered by this study include cognitive development in low-income countries, the influence of economic crisis on early childhood development, conflicts, epidemics and orphanhood, promoting social equity and the efficiency of early childhood development programs.