TFSL a top-10 illiquid stock

This article suggests that once we begin to rebound from the current market correction, lightly traded stocks like TFSL stand to benefit the most. (Note – the article is from Mar. 17)

As the major U.S. stock-market indices continue languish in bear-market territory, investors are looking for signs of a market bottom and preparing a wish list of potential bargains in anticipation of a recovery.

One factor investors should consider are low liquidity stocks, according to a Monday research note by Goldman Sachs analysts, led by Ryan Hammond.

On Tuesday, the Dow Jones Industrial Average DJIA, -0.33%, the S&P 500 index SPX, -1.21% and the Nasdaq Composite index COMP, -2.14% were trading roughly 30% below their record highs notched in February, in what Goldman describes as “the quickest bear market on record.”

The price declines have led to higher bid-ask spreads and greater difficulty for investors in finding buyers or sellers of stocks at desired prices. “Liquidity has evaporated within U.S. equity markets, magnifying index-level moves during the ongoing bear market,” Hammond wrote. “The magnitude of the current liquidity shock, as measured by our ‘illiquidity ratio’, is now approaching the 2008 experience.”


no position

1 Like

I didn’t see how they were defining illiquidity here, but average volume is better than 200,000 per day. That doesn’t strike me as particularly low volume for a stock with publicly traded stocks of ~$800 million.


1 Like