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Falling Knives: Extreme Value Investing, Ladd Kochman, James Tompkins
Falling Knives: Extreme Value Investing, Ladd Kochman, James Tompkins
Ladd Kochman
We identified 979 stocks with year-ending losses of 60 percent or more during the 1993-2002 period. Post-fall returns extended our analysis through 2005. Unlike previous research, we screened our "falling knives" for financial strength to promote a greater likelihood of recovery and minimize any survivorship bias. When we added the constraint of Altman Z-Scores > 3.0, our data set shrank to 790 stocks and produced two-year and three-year average annual returns that tripled their market counterparts.
Dead Cat Bounce [Radio Interview], Bruce Vanstone
Dead Cat Bounce [Radio Interview], Bruce Vanstone
Bruce Vanstone
Regular 'Word of the Week' segment. Interview with Professor Bruce Vanstone, Bond University, regarding 'dead cat bounce'. Vanstone says it's a Wall Street term which means a stock has fallen from a very high price to a low price in small period of time. Vanstone notes a small upward spike but the price will normally tend to decline again. Vanstone uses Billabong as an example to illustrate a 'dead cat bounce'.