A stock that has fallen in price but is thought to have the potential of climbing back to its original level.
- The adviser still recommends the budget airline as a recovery stock, despite its profit warning and higher oil prices.
- However, if an investor selects a smaller company or a company going through a poor trading period (a recovery stock), or those in smaller emerging markets, then the inherent risk is greater.
- Buyers in the City market at present are mainly property companies, German funds and investors looking for investments as recovery stock.
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