- Company wings clipped by strikes, a luxury deal and looming lawsuits
- These outside factors mean recovery should be possible
‘Fallen angels’ litter the London Stock Exchange: companies that have shrunk in value enough to come out of major indices or make the undignified move from midcap to small cap. For investors, they may provide a rebound opportunity.
Investment bank Deutsche Numis follows these stocks closely and, at the start of every year, reveals the new entrants to its Smaller Companies plus Aim Index. As the name suggests, this index reflects the bottom 10 per cent of the main UK market by value and similarly sized businesses from the junior market.