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Definition of 'Cult Stock'
A classification describing stocks that have a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals. Typically, investors are initially attracted to the company's potential and accumulate positions in speculation that its potential will be fulfilled, providing the investors with a substantial payout.
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Investopedia explains 'Cult Stock'
While most of these cult stocks promise they will be the next big story after they make a new discovery or get the newest contract from the government, most do not provide investors with anything other than the story. Furthermore, these stocks typically generate very little, if any, revenue at all.
For example, many micro-cap biotech stocks are cult stocks. While they promise that they are going to be working on a miracle compound or drug, most of them do not have any source of income as they slowly burn away their initial capital in research and development.
However, some cult stocks do occasionally make good on their stories to become successful. For example, Research in Motion was once a widely followed cult stock that had a great story that attracted many investors, but no revenue. Fortunately, its BlackBerry PDA device became a runaway hit, which elevated the cult stock to its multibillion market capitalization status.
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Search results for 'Cult Stock'
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http://stocks.investopedia.com/stock-analysis/2012/Apple-Now-A-Cult-Stock-AAPL-XOM-GOOG-MSFT0217.aspx
... Article; Comments (0). Apple Now A Cult Stock. Posted:
Feb 17, 2012 08:17 AM by Sham Gad. ...
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http://www.investopedia.com/articles/stocks/07/cult_stocks.asp
... invest in them. A true "cult stock" is not found among the mainstream stocks
that everyone knows and loves. These types of stock ...
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http://stocks.investopedia.com/stock-analysis/2011/Guess-Which-Stock-To-Buy-Now-GES-ANF-URBN-AEO-CHS0509.aspx
... "Guess" Which Stock To Buy Now. Posted ... When the relative strength index
of a stock falls below 30, it is said to be oversold. Well ...
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http://stocks.investopedia.com/stock-analysis/2009/Tagging-With-Stock-Pros-ADPT-MSFT-TV-ITP1103.aspx
... Tagging With Stock Pros. Posted: Nov ... Filed Under: Hedge Funds,Stock Analysis.
Tickers in this Article: ADPT, ITP, MSFT, TV. With the ...
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http://stocks.investopedia.com/stock-analysis/2010/The-Most-Beautiful-Stock-In-The-World-ULTA-SBH-STNR-RGS-RDEN-HOT0624.aspx
... Article; Comments (0). The Most Beautiful Stock In The World. Posted: Jun 24,
2010 06:46 AM by Will Ashworth. ... Filed Under: Stock Analysis. ...
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http://stocks.investopedia.com/stock-analysis/2009/Too-Early-For-A-Housing-Bottom-KBH-LEN-DHI-TOL.-BZH0622.aspx
... Get Free Stock Analysis By Email. IN PICTURES: 8 Tips For Starting Your Own Business
Not Quite There Yet New data released yesterday showed May housing starts ...
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http://stocks.investopedia.com/stock-analysis/2010/The-Best-Stocks-In-The-Best-Sectors-UVV-XLP-JCS-IYZ-RLH0208.aspx
... latest pullback in the stock market, it's interesting to note the sectors that have
held up best. ... Price to sales on the stock is 0.62 and price to book 0.58. ...
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http://stocks.investopedia.com/stock-analysis/2009/Healthy-Income-From-European-Preferreds-IGK-RBS-T-AZM-HBC-RBS0914.aspx
... Get Free Stock Analysis By Email. Below, we focus on several large cap, European
financial preferred shares with strong credit ratings and yields worth noting. ...
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http://stocks.investopedia.com/stock-analysis/2011/4-Technically-Sound-Small-Caps-CMN-MOV-CPKI-WINN0711.aspx
... (To help you pick stocks which is align with your investment objectives, read
How To Pick A Stock.). Get Free Stock Analysis By Email. ...
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http://stocks.investopedia.com/stock-analysis/2010/Selling-Pressure-Haunts-The-Euro0204.aspx
... Technically, both signals combined strongly suggested another leg lower before any
further upside can take place. Get Free Stock Analysis By Email. ...
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