Overview
A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like, "don't try to catch a falling knife," which can be translated to mean, "wait for the price to bottom out before buying it."
I think Pitney Bowes (PBI) can definitely be described as a falling knife. The stock has continued to struggle, seeing sharp declines in its price over the following periods.
- Year to Date - 22.7% decline
- 1 Year - 43.8% decline
- 3 Year - 59.8% decline
This has been part of a far longer trend for the company, with the stock falling significantly from 2008 to 2013. The stock recovered somewhat and saw an increase in its price through 2013-2014 but has steadily declined since then.
