Torpedo Stock
A classification for a stock that has fallen substantially in value and that it appears it will continue to fall in value in the forseeable future. The name for this classification was derived from how the stock's price is sinking in a manner that is similar to how a battleship would be after being struck by a torpedo. Investopedia Says:
A change in the business' underlying fundamentals can turn the company's stock into a torpedo stock. For example, investors see earnings as a good indicator of a business' success. As even a gradual rate of earnings growth would be indicative that business is doing well. However, quarter after quarter of declining earnings with no end in sight can be enough to cause investors to "jump ship" as its price starts to plummet. Related Terms:
Air Pocket Stock
Barefoot Pilgrim
Bloodletting
Capitulation
Falling Knife
In the Penalty Box
Panic Selling
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