Torpedo Stock
Categories: Stocks
Think: old, black and white submarine movie. The old German ship is torpedoed and sinks realllllly fast. Huge hole in hull; no hope of happiness ever again.
That's a torpedo stock. You bought it at $100. A sell side analyst downgraded it, or they had a bad quarter, or something fundamental happened, and the next day it closes at $90...then at $82 the next, then at $73 the next, and so on until it's at 4 bucks and is running out of cash.
No hope of recovery. Pretty much The End. See the film U-571 or Das Boot for details.
Related or Semi-related Video
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea