Search Menu
Photonics Media Photonics Buyers' Guide Photonics EDU Photonics Spectra BioPhotonics EuroPhotonics Industrial Photonics Photonics Showcase Photonics ProdSpec Photonics Handbook
More News
Email Facebook Twitter Google+ LinkedIn Comments

Hot Stocks? Not Necessarily

Photonics Spectra
Jun 2001
Companies that win kudos for their growth don't necessarily continue to perform to such high expectations, according to a study by financial researchers.

At three universities, researchers studied 732 companies that BusinessWeek had characterized as "hot growth companies." They found that although the companies' growth was hot before the magazine coverage, it didn't stay hot afterward.

An index of the companies' stocks rose more than 4 percent per month for the 36 months before the coverage, but it rose only about 1 percent per month in the 36 months after. The "hot growth" stocks returned 81 percent more than an equally weighted index from the Center for Research in Security Prices before the news coverage, but 17 percent less than the center's index after coverage.

The research by W. Scott Bauman of Northern Illinois University, C. Mitchell Conover of the University of Richmond in Virginia and Don R. Cox of Appalachian State University is slated to appear in the Journal of Financial Research.

Businessdefenselight speed

Terms & Conditions Privacy Policy About Us Contact Us
back to top
Facebook Twitter Instagram LinkedIn YouTube RSS
©2018 Photonics Media, 100 West St., Pittsfield, MA, 01201 USA,

Photonics Media, Laurin Publishing
x Subscribe to Photonics Spectra magazine - FREE!
We use cookies to improve user experience and analyze our website traffic as stated in our Privacy Policy. By using this website, you agree to the use of cookies unless you have disabled them.