You loved The Vomitmaker, a new video game that every kid wanted and every janitor hated. Played all over schools, all around the world. It was $100 a share and stayed there a while...until Dramamine sponsored the game. Then the game's, um, denouement...stopped happening. The stock plummeted to $32...the bounce...but then the non-believers sold in another wave and the stock's bounce became oversold, as shares went to $18. With $22 a share in cash and $5 in tax losses and other real estate and patents, investors were valuing the operations of the company at less than zero, like a Mel Gibson movie nowadays.
So you bought in big, believing that vomit would return as the fancy of teenage boys. And you hoped the bounce's oversold status would go away, like the smell of three-day-old vomit.
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![Finance: What is Dead Cat Bounce?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.712_770x433.jpg)
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea