Investopedia

Continue to Site »

Sandbag

Filed Under » , ,
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.

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. The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.

  3. Wall Street’s Glass Ceiling

    It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total.

  4. Is Lululemon's Chief Product Officer to Blame For Sheer Debacle?

    Lululemon announced April 3 that Chief Product Officer Sheree Waterson was leaving the company as of April 15. Assigning blame might appease the board, but it shouldn't do anything for investors.

  5. Schulze Plus Joly Equals Success?

    Best Buy founder Richard Schulze announced March 25 that he was dropping his bid for the company and rejoining the board as Chairman Emeritus. Two other former board members are rejoining as ...

  6. Is it Time To See Through Lululemon?

    Lululemon has pulled 17% of its women's bottoms due to a quality problem. It turns out that its latest batch of black luon yoga pants, which combine Lycra spandex with nylon, were virtually see ...

  7. These Companies Could Buy Back Up To 40% Of Their Own Stock

    It's usually a great sign when companies buyback their own stock, and these companies are ripe for just that.

  8. How Companies Can Attract Top Female Employees

    Companies need to make an effort to learn how to attract and retain female employees in order to achieve a greater gender balance in the workplace.

  9. What is the difference between redemption of shares and repurchase of shares?

    Sometimes, shares of stock offered by a company are not regular, market-driven common shares. Instead, they may be preferred shares, which are considered fixed income securities and are issued ...

  10. 4 Top Reasons Why Companies Hire New CEOs

    Here are the top reasons why companies look for new CEOs.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center