Value investors who paid attention to fundamentals (e.g. strong businesses masked by unprofitable divisions, or companies trading at discounts to cash etc.) reaped enormous profits.
- A liquidation is an example of a catalyst, and there are some companies where such events have returned generous - and quick - positive results for investors (e.g. during bankruptcy events, where securities generally trade at a discount to their recoverable values).
- Share buybacks and asset sales also represent partial catalysts, as they can cause a stock to inch closer to its underlying value. More importantly, such events signal that management is interested in returning value to shareholders, which bodes well for the future.
- complex securities (i.e. securities institutions can't purchase because they don't fit set categories),
- rights offerings (often offering prices lower than current market value),
- spinoffs (as they are usually sold by holders of the parents, thus depressing prices immediately) and
- risk arbitrage (depending on the market's mood, as sometimes the market's exuberance can erode returns).