One of the mysteries of the English language finally explained.
A share that has fallen in price but is thought to have the potential of climbing back to its original level.
- ‘The adviser still recommends the budget airline as a recovery stock, despite its profit warning and higher oil prices.’
- ‘However, if an investor selects a smaller company or a company going through a poor trading period (a recovery stock), or those in smaller emerging markets, then the inherent risk is greater.’
- ‘A strong cash position can be very important, especially for investors who buy recovery stocks at the very bottom, where economic conditions are still poor.’
- ‘They accept that, except for special situations, such as takeovers and recovery stocks, there is no guarantee that stocks will rise at all.’
- ‘Buyers in the City market at present are mainly property companies, German funds and investors looking for investments as recovery stock.’
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