News: Bad news temporarily depressing a stocks value with an anticipated upswing.
Economic Sectors: Surrounding factors in the economy or market segment indirectly affecting market performance. Is the company positioned to weather the storm and emerge prepared to take advantage of newly freed investment money?
Inside News: News of change in management or takeover bids. What effect will these changes have once they are completed?
Insider Trading: Transactions inside the company by officers. This insider trading on the open market is required by law to be disclosed to SEC. Such actions may signal imminent change in a companies operation and may by its nature trigger increase or decreases in value.
Price History: Especially when compared to competitors and industry averages, price history is a primary indicator. Is the stock currently undervalued but with strong fundamental factors signalling a likely recovery?
Industry Share: Viewed over time and relative to industry averages for growth, is the company ahead of growth, pushing the industry envelope, but perhaps behind in profits causing depressed value, all the while poising itself for an eventual recovery and dominant position?
Management: Discussions with management to determine in more detail and with greater understanding the current position.
Financial Position: A review of liabilities and collateral backing to evaluate the downside risk. Once the various factors have been determined and their relationship and timing to industry trends for the anticipated time for positive returns are understood, the Special Situation investment is announced to participating customers in this area of opportunity.