Bottom Fishing

Bottom Fishing

Investing in stocks that are cheap because of a problem with the company or the economy. A bottom-fishing investor speculates that the stock's depressed price is temporary, will recover and make for a profitable investment. Bottom fishing is a risky strategy because the company's stock price is depressed for a reason and may not bounce back.

Here are some examples of bottom fishing:

-Investing in the stock of an aluminum company when aluminum prices are depressed.
-Buying the stock of a container shipping company during an economic depression.
-Investing in a print media company when the Internet is putting such companies out of business.
-Buying shares of a bank during a financial crisis.

In each of these cases, it is unclear when or if the stock's price will recover.

Investment dictionary. . 2012.

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Look at other dictionaries:

  • Bottom fishing — Bottom fishing, called legering in the United Kingdom, is fishing the bottom of a body of water. A common rig for fishing on the bottom is a weight tied to the end of the line, and a hook about an inch up line from the weight. The weight can also …   Wikipedia

  • bottom fishing — ˈbottom ˌfishing noun [uncountable] the activity of buying shares in companies when the price is very low, and is not likely to become lower: • Bottom fishing can be a risky business, because shares are usually sold cheaply for a reason. * * *… …   Financial and business terms

  • bottom fishing — n. seeking something at its lowest price; seeking something at a low cost and willing to accept inferior quality. □ I don’t think bottom fishing for stocks is always wise. There is always a good reason why the price is low. □ Bottom fishing… …   Dictionary of American slang and colloquial expressions

  • bottom fishing —  Buying stocks that have significantly declined in value.  ► “The bullish school . . . figures that the Mexican markets have passed their darkest hours and that it is time to start bottom fishing for bargains.” (Barron’s, April 24, 1995, p. MW7) …   American business jargon

  • bottom fishing — noun : fishing designed to catch bottom fish in which natural bait is usually used and the sinker or hook rests on or near the bottom …   Useful english dictionary

  • bottom-fishing — noun Date: 1975 the practice of making purchases (as of stocks) when prices appear to be at their lowest point • bottom fisher noun …   New Collegiate Dictionary

  • bottom fishing — The practice of seeking out very low priced shares to invest in, or of waiting until the market as a whole is low before investing, in the hope of making a profit when prices rise …   Big dictionary of business and management

  • bottom fishing — / bɒtəm ˌfɪʃɪŋ/ noun the act of buying shares when they are falling or have fallen substantially, in the hope that they will rise again (informal) …   Dictionary of banking and finance

  • Bottom trawling — The Celtic Explorer, a research vessel engaged in bottom trawling …   Wikipedia

  • fishing — /fish ing/, n. 1. the act of catching fish. 2. the technique, occupation, or diversion of catching fish. 3. a place or facility for catching fish. [1250 1300; ME fisshing. See FISH, ING1] * * * or sport fishing Sport of catching fish freshwater… …   Universalium

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