Turnaround Investing
Turnaround investing involves taking a position in a stock that has fallen out of favor. This is often caused by bad news initially associated with the company and is consequently not perceived by the majority of investors to be a worthwhile consideration. It remains an attractive investment option as its stock price is likely to recover—or turnaround—in order to reflect this true value. Turnaround investing may lose investors a sizeable amount of capital if the company cannot complete the intended turnaround.