Sandbag

Dictionary Says

Definition of 'Sandbag'

A tactic used to hide or limit expectations of a company's or individual's strength in order to produce greater than anticipated results. Sandbagging, in business, is most often seen when company managers temper the expectations of superiors or shareholders by giving guidance below what they know will be achieved. Once the better than expected results are presented, the firm looks all the better.
Investopedia Says

Investopedia explains 'Sandbag'

Let's imagine for example that Orange Inc had gained a reputation in the late 2000s for sandbagging quarterly expectations leading up to earnings season. Analysts and pundits alike would be confident that quarterly numbers would be strong. However, when results were released they would be markedly higher than most expected, thus leading to a surge in share value, which may be a more favorable outcome in terms of press coverage.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Lobster Trap

    A strategy used ...
  2. Takeover

    A corporate ...
  3. White Knight

    A white knight ...
  4. Sleeping Beauty

    A company that ...
  5. Target Firm

    A company which ...
  6. Black Knight

    A company that ...
  7. Shark Repellent

    Slang term for ...
  8. Macaroni Defense

    An approach ...
  9. Mergers And Acquisitions - M&A

    A general term ...
  10. Inorganic Growth

    A growth in the ...

Articles Of Interest

  1. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  3. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  4. Female Managers Can Raise Share Values

    Women are quite capable of proving their worth in raising corporate value through various financial, managerial and human capabilities.
  5. Introduction To Incentive Stock Options

    Here are some basic highlights of how ISOs work and the ways they can be used.
  6. Beware Of Company Stock In Qualified Plans

    While this strategy does have a few advantages, it can also pose some substantial risks to employees.
  7. Employees Vs. Investors

    Who is more important to the CEO and a company's bottom line? Is it employees or company shareholders?
  8. Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  9. Payroll Deductions Pay Off

    Find out how you can bypass or defer taxes on thousands of dollars each year.
  10. Is Your Defined-Benefit Pension Plan Safe?

    Your plan may not last in a rocky market. Find out whether your savings will be affected.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center