2006-09-05 11:30:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
A seasonal stocks like toy and candy companies. Many retail companies start making money in the fourth quarter. Companies that just make or sell cooling systems might see most of there profit in the second quarter.
2006-09-05 12:05:26 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
I'm no financial guru but I believe that you can use the word cyclical to give you a clue toward your answer. Think about the word cycle and you will be closer to understanding what is a cyclical stock. For instance, if there seems to be certain cycle or pattern to the state of our economy, it can be said that we have a cyclical economy. So, are there any stocks that seem to follow some sort of pattern?
2006-09-05 11:42:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A good example of cyclical stocks is oil stocks. When supplies run low relative to demand the price goes up. Then producers come into the market and supplies increase. It takes a while to get the infrastructure in place to produce more oil, and and for it to slow down when there is enough to meet current demand. So then the price crashes and completes the cycle. Supply lags demand which creates a cycle of boom and biust.
2006-09-05 12:05:32 · answer #3 · answered by jeff410 7 · 0⤊ 0⤋
A stock that rises quickly when economic growth is strong, and falls rapidly when growth is slowing down.
An example would be the automobile market, because as growth slows in the economy consumers have less money to spend on new cars. Non-cyclicals would be industries like health care where there is constant demand.
2006-09-05 11:36:08 · answer #4 · answered by RV 2 · 1⤊ 0⤋
company that makes fem hyg products.......
2006-09-05 11:33:42 · answer #5 · answered by scott n 2 · 0⤊ 0⤋