Zombies

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Dictionary Says

Definition of 'Zombies'

Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to the high costs associated with certain operations, such as research and development. Most analysts expect zombie companies to be unable to meet their financial obligations.

Also known as the "living dead" or "zombie stocks".
Investopedia Says

Investopedia explains 'Zombies'

Because a zombie's life expectancy tends to be highly unpredictable, zombie stocks are extremely risky and are not suitable for all investors. For example, a small biotech firm may stretch its funds extremely thin by concentrating its efforts in research and development in the hope of creating a blockbuster drug. If the drug fails, the company can go bankrupt within days of the announcement. On the other hand, if the drug is successful, the company could profit and reduce its liabilities. In most cases, however, zombie stocks are unable to overcome the financial burdens of their high burn rates and most eventually go bankrupt. 

Given the lack of attention paid to this group, there can often be interesting opportunities for investors who have a high risk tolerance and are seeking speculative opportunities. 

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'Zombies'

  • Chasing Down Biotech Zombie Stocks

    http://www.investopedia.com/articles/stocks/07/biotech_zombies.asp
    ... Biotech zombies will never have genuine revenues, but they may show some revenues
    on the balance sheet because of interest income, grant payments and study ...

  • Haunting Wall Street: The Halloween Terminology Of Investing

    http://www.investopedia.com/articles/03/102903.asp
    Beware of zombies and Jekyll and Hyde companies! ... Zombies in the investing
    world aren't that different from their supernatural cousins. ...

  • Sorting Out Cult Stocks

    http://www.investopedia.com/articles/stocks/07/cult_stocks.asp
    ... see Oil And Gas Industry Primer, Fueling Futures In The Energy Market and Trading
    Gold And Silver Futures Contracts.) Biotech zombies, companies that have ...

  • Top 5 Grossing Horror And Thriller Movies - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/Top-5-Grossing-Horror-And-Thriller-Movies.aspx
    ... Will Smith's post-apocalyptic science fiction horror film may not have been a hit
    with the zombies in the film, but it was certainly a hit at the box office. ...

  • Dawn Of The Zombie Debt

    http://www.investopedia.com/articles/pf/06/zombie-debt.asp
    We'll show you how to keep these zombies from eating you alive. ... Find how to protect
    yourself from these zombies and finally lay them to rest. ...

  • Will Social Gaming Keep Electronic Arts Relevant?

    http://stocks.investopedia.com/stock-analysis/2011/Will-Social-Gaming-Keep-Electronic-Arts-Relevant-ERTS-ATVI-DIS-RENN-AAPL-GOOG-NTES-SNDA-NCTY-TCEHY-TTWO0713.aspx
    ... Electronic Arts announced Tuesday night that it would acquire PopCap Games, publisher
    of games like Plants vs. Zombies and Bejeweled, in a cash-and-stock deal. ...

  • 10 Jobs With High Pay, Low Education Requirements - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/1009/10-Jobs-With-High-Pay-Low-Education-Requirements.aspx
    ... We'll show you how to keep these zombies from eating you alive, in Dawn Of The Zombie
    Debt.) Trusting the 'Net Beware of online lists of top-paying professions ...

  • The Advantages Of Investing In Aggressive Companies

    http://www.investopedia.com/articles/basics/03/072503.asp
    ... When faced with floundering fortunes, the fake shark would collect zombies (insolvent
    companies) or firms that offered no competitive advantage. ...

  • Will Europe's Bailout Lead To The Next Banking Crisis?

    http://stocks.investopedia.com/stock-analysis/2012/Will-Europes-Bailout-Lead-To-The-Next-Banking-Crisis-BBVA-DB-NBG-STD0214.aspx
    ... by Rebecca Lipman Did the European Central Bank's cheap loan bailout back in December
    set EU banks on a course to become insolvent "zombies banks?" Economists ...

  • 6 Management Monsters Haunting Wall Street - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1010/6-Management-Monsters-Haunting-Wall-Street.aspx
    ... Every Halloween children (and no small number of adults) go to great lengths
    to look like zombies, vampires, witches, superheroes and so on. ...

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