A stock which may look like a value stock due to a significant drop in price, but which is not actually undervalued. The stock price may have fallen due to its circumstances, and may actually continue to fall. In order to avoid purchasing value traps, investors should study not just the stock price, but also other information about that company.
Related information about value trap:
- Value Trap Definition | Investopedia
A stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period.
- Value trap - Wiki | The Motley Fool
A value trap masquerades as a value stock because its stock price has been beaten down. However, unlike a true value stock, a value trap's price is low for a ...
- HP: Value Play or Value Trap? (HPQ)
4 days ago ... The Motley Fool - HP's big 2011 mistake is getting thornier and thornier.
- HP Is “the Epitome of a Value Trap” After “Embarrassing Debacle ...
Nov 21, 2012 ... From the blog Daily Ticker: Hewlett-Packard (HPQ) shares tumbled 12% to a 10- year low Tuesday after the company announced a shocking ...
- Value Trap Definition from Financial Times Lexicon
A financial instrument (stocks or bonds) that appears cheap on historical measures or valuation grounds, such as price/earnings ratio, but the price never ...
- Is Microsoft The Ultimate Value Trap? - Seeking Alpha
2 days ago ... I think Microsoft (MSFT) is transforming into a value trap in the same manner Dell (DELL), Hewlett-Packard (HPQ), Yahoo (YHOO), and Nokia ...
- Hewlett-Packard Is A Value Trap - Seeking Alpha
Nov 11, 2012 ... A value trap doesn't have to have all of those five points, but several do show up most of the time and my opinion is that Hewlett Packard (HPQ) ...
- Hewlett-Packard: Value Trap or Bargain Stock? - CNBC's Fast ...
Nov 20, 2012 ... As Hewlett-Packard takes a massive write-down over its Autonomy acquisition, what's ahead for the stock?