Investment Terms

Big uglies is a slang term for large, old companies operating in hard, so-called dirty, industries such as manufacturing, oil, steel, and mining.
These types of stocks tend to be unpopular with investors, with their generally dogged, steady returns and resistance to volatility often being overlooked in favor of more exciting, higher growth companies on the cutting edge of an industry.
Over the years, the criteria of what constitutes a big ugly have broadened. Nowadays, the term commonly refers to all kinds of out-of-favor investments. Big uglies are generally household names with a stable market share in established industries.
Big uglies traditionally denoted stocks in the manufacturing and infrastructure industries. As technology has advanced, the term has gradually loosened and is now more all-encompassing of any company in any unfashionable sector.
Being unpopular means big uglies typically trade at low price-to-earnings and price-to-book ratios, putting them firmly in the value category of investing. However, many investors prefer to chase the higher returns potentially provided by the racier, more saturated parts of the stock market.
Investors who want to make lots of money or have short-term goals may not be interested in big uglies because they simply don't experience enough quarterly growth.

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Big uglies is a slang term for large, old companies operating in hard, so-called dirty, industries such as manufacturing, oil, steel, and mining. These types of stocks tend to be unpopular with investors, with their generally dogged, steady returns and resistance to volatility often being overlooked in favor of more exciting, higher growth companies on the cutting edge of an industry.Over the years, the criteria of what constitutes a big ugly have broadened. Nowadays, the term commonly refers to all kinds of out-of-favor investments. Big uglies are generally household names with a stable market share in established industries.Big uglies traditionally denoted stocks in the manufacturing and infrastructure industries. As technology has advanced, the term has gradually loosened and is now more all-encompassing of any company in any unfashionable sector.Being unpopular means big uglies typically trade at low price-to-earnings and price-to-book ratios, putting them firmly in the value category of investing. However, many investors prefer to chase the higher returns potentially provided by the racier, more saturated parts of the stock market. Investors who want to make lots of money or have short-term goals may not be interested in big uglies because they simply don't experience enough quarterly growth.

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Ankle biter is a slang term for a stock with low market capitalization.
Ankle biter is also used to describe very young children or possibly a small, aggressive dog. The idea is that both small children and dogs are so small that they can only reach one's ankles. This slang term emerged around the 1950s.
As an investment, ankle-biters tend to be quite volatile and are often thinly traded. On the plus side, ankle-biters often have greater growth potential than larger stocks and encompass many emerging technologies.
Generally, an ankle biter is a stock that has a market capitalization of less than $500 million. Such stocks are also referred to as micro-cap or small-cap stocks. They are also sometimes described more generally as secondary stocks. Although there is no etched-in-stone definition, typically, a stock is considered to be a small-cap, if it has a market capitalization of $300 million to $2 billion, while a micro-cap stock is an issue with a market cap of less than $300 million.

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Ankle biter is a slang term for a stock with low market capitalization.Ankle biter is also used to describe very young children or possibly a small, aggressive dog. The idea is that both small children and dogs are so small that they can only reach one's ankles. This slang term emerged around the 1950s.As an investment, ankle-biters tend to be quite volatile and are often thinly traded. On the plus side, ankle-biters often have greater growth potential than larger stocks and encompass many emerging technologies.Generally, an ankle biter is a stock that has a market capitalization of less than $500 million. Such stocks are also referred to as micro-cap or small-cap stocks. They are also sometimes described more generally as secondary stocks. Although there is no etched-in-stone definition, typically, a stock is considered to be a small-cap, if it has a market capitalization of $300 million to $2 billion, while a micro-cap stock is an issue with a market cap of less than $300 million.

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Cookie jar reserves are savings from previous quarters that a company records as earnings in subsequent quarters to make it appear that its earnings were higher than they really were. When a company fails to meet its earnings target, a company accountant can dip into the cookie jar to inflate the numbers.
Needless to say, the practice of cookie jar accounting is frowned on by government regulators as it misleads investors on the company's performance.
Wall Street values companies that consistently meet or beat their earnings targets quarter after quarter. Analysts rate them highly and investors pay a premium for their stock shares.
They tend to be valued more highly than companies that have the potential to earn spectacular amounts of money in some quarters but fail in others.
Cookie jar accounting can be used to smooth out volatility in financial results and give a false impression of stability.

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Cookie jar reserves are savings from previous quarters that a company records as earnings in subsequent quarters to make it appear that its earnings were higher than they really were. When a company fails to meet its earnings target, a company accountant can dip into the cookie jar to inflate the numbers.Needless to say, the practice of cookie jar accounting is frowned on by government regulators as it misleads investors on the company's performance.Wall Street values companies that consistently meet or beat their earnings targets quarter after quarter. Analysts rate them highly and investors pay a premium for their stock shares.They tend to be valued more highly than companies that have the potential to earn spectacular amounts of money in some quarters but fail in others.Cookie jar accounting can be used to smooth out volatility in financial results and give a false impression of stability.

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A big bath is an accounting term that is defined by a company's management team knowingly manipulating its income statement to make poor results look even worse in order to make future results appear better. It is often implemented in a relatively bad year so that a company can enhance the next year's earnings in an artificial manner.
A big bath is so named because it is like wiping the slate clean. A big bath accounting manoeuvre can result in a big rise in apparent future earnings, which might result in a larger bonus for executives, giving them the incentive to pursue a big bath accounting manoeuvre.
New CEOs sometimes use the big bath so that they can blame the company's poor performance on the previous CEO and take credit for the next year's improvements.
Because stocks trade on earnings, an adverse earnings report may cause significant depreciation in a stock. When earnings are positively affected by the big bath in the future, the stock price can recover and trade even higher than it otherwise would have without the accounting manipulation. A big bath is not necessarily illegal because it can be done effectively within the boundaries of current accounting rules; however, it is seen as unethical.

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A big bath is an accounting term that is defined by a company's management team knowingly manipulating its income statement to make poor results look even worse in order to make future results appear better. It is often implemented in a relatively bad year so that a company can enhance the next year's earnings in an artificial manner.A big bath is so named because it is like wiping the slate clean. A big bath accounting manoeuvre can result in a big rise in apparent future earnings, which might result in a larger bonus for executives, giving them the incentive to pursue a big bath accounting manoeuvre. New CEOs sometimes use the big bath so that they can blame the company's poor performance on the previous CEO and take credit for the next year's improvements.Because stocks trade on earnings, an adverse earnings report may cause significant depreciation in a stock. When earnings are positively affected by the big bath in the future, the stock price can recover and trade even higher than it otherwise would have without the accounting manipulation. A big bath is not necessarily illegal because it can be done effectively within the boundaries of current accounting rules; however, it is seen as unethical.

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A grey wave describes an investment or company thought to be profitable in the long term or extended long term. Speculators of grey waves will buy an investment vehicle that they believe will show a return in the very long term, and not before.
The term grey wave can be explained by the understanding that when buying into a grey wave company, the investor should not plan for an immediate or even short-term positive return but, instead, only when they are much older and have grey hair.
Grey wave describes investment in the company that will likely not yield a positive return until a long time has passed.
Grey wave investments are not suitable for all investor types. Often, portfolio managers buy stocks that are expected to yield a particular return within a particular time frame, typically three to five years.

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A grey wave describes an investment or company thought to be profitable in the long term or extended long term. Speculators of grey waves will buy an investment vehicle that they believe will show a return in the very long term, and not before. The term grey wave can be explained by the understanding that when buying into a grey wave company, the investor should not plan for an immediate or even short-term positive return but, instead, only when they are much older and have grey hair.Grey wave describes investment in the company that will likely not yield a positive return until a long time has passed. Grey wave investments are not suitable for all investor types. Often, portfolio managers buy stocks that are expected to yield a particular return within a particular time frame, typically three to five years.

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