Out – of – Favour Industry or Shares

Out – of – Favour Industry or Shares Owing to the changing economic climate of a country, some industries, once quite profitable, may fall into evil times and languish. Their shares then become unpopular with the investors. Passenger cars and TV manufacturing do not at the moment hold out high prospectus of profit, and their shares have fallen. Out – of – favour shares tend to have low P/E RATIO. CONTRARIANS often pick up such shares in the expectation of a change in the situation, resulting in tan appreciation of the price of such shares.

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