Stocks can flirt with a price bottom for a lot of reasons. Usually, however, investors will assume that there is something fundamentally unsound about the stock, or the company. Perhaps its business model is flawed, perhaps its product has grown unpopular – these, and many more factors can drive the share price down.
But sometimes, perhaps just as often, a stock price will fall when there is no underlying unsoundness. A spate of bad news, a quarter that misses expectations, or a bad sales…
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