special situation

Special Situation

An occurrence that may lead an investor to trade a particular security, usually to make a short-term gain. For example, if a company announces an earnings surprise, an investor may buy its stock in the hope of selling it later in the trading day for a higher price. Other examples of special situations include mergers and acquisitions and bankruptcy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

special situation

A currently undervalued stock that can suddenly increase in value because of imminently favorable circumstances. For example, a firm may be about to bring a new, potentially profitable product to market. If everything turns out favorably, the gains in the firm's stock could be quite large. Another special situation might derive from the impending liquidation of a company. Special situations are usually quite risky.
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.

Special situation.

An undervalued stock that one or more analysts expects to increase in price in the very near future because of an anticipated -- and welcome -- change within the company is known as a special situation.

That change could be the introduction of a major new product, a corporate restructuring, or anything else that has the potential to increase earnings.

In some cases, the fact that a stock is identified as a special situation creates a flurry of investor interest and actually helps drive the price up even before the change has had time to take effect.

A stock that is extremely volatile over the short term because of important recent news about the company, such as a takeover or spin-off, is also described as a special situation.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
SKW Funding and Bain Capital Credit will also target special situation loan originations including mezzanine and preferred equity investments.
"Of course, (we) have to do so even in a few days if it's a special situation. But I don't think now is such a special situation."
With the 2019 edition of the tournament around the corner, Nadal admitted that the match was a "special situation" as nobody expected it to happen.
American Industrial Partners, an operationally oriented private equity firm that makes control and special situation investments in industrial businesses serving domestic and global markets, has acquired majority ownership of The Brock Group, a Houston-based provider of mission-critical services to the refining, petrochemical, power generation and other industries.
Although Germany only said their "voice will be heard", Mr Hollande said a "special situation" applies.
Although Flybe runs routes in and out of Cardiff Airport it does not have any staff based there which Mr Hammad said placed it in a 'special situation'.
(OTC: IMTO) said it is featured in the February 13 issue of Flaherty Special Situation Newsletter.
Andrew said: "Other law firms might have an insolvency team or a restructuring team, but what we are offering is a team that will projectmanage the special situation and bring about the desired result - this involves situations such as saving good businesses from insolvency, creating new opportunities for business purchases and alleviating constraints placed upon business owners by stakeholders.
Pays for those with difficulty for recruitment or with special situation are capped at NT$300,000.
Addressing the Progressive Socialist Party head, Kabbara said "despite the fact you do not like us, and the fact you are sensitive about" Lebanon's Sunni community, "we understand your special situation" as the leader of the Druze community
Indogulf Financial Services hosted the meeting jointly with Birla Sunlife for non-resident Indian investors in the new Birla Sunlife Special Situation Fund.
In 1954 he added the Special Situations Survey, a monthly focusing, each issue, on one stock that they regarded as a "special situation" that would do well during, say, the following 18 to 24 months.
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