Traunch
In order to understand what Traunch is, it helps to know what it isn't. In simple terms, Traunch is not a stock pick. Stock picks are stock selections which are generated on the basis of fundamental analysis and which are designed to make a profit when the underlying security or portfolio goes up in value. Whereas most stock picks are considered long-term investments, Traunch is typically considered a short-term pick. That is, it's not a stock pick which is intended to provide you with stock picks that will make you money over the long term. Rather, it's intended to provide you with stock picks that will help you generate a consistent, reliable income from trading the market on a short term or long term basis.
In simple terms, a traunch is one of several related securities as part of a single trade. In the context of this type of trading, however, a branch is typically referred to as a nano-cap, small cap, or growth stock. In the context of fundamental analysis, each stock is treated as a distinct piece of that portfolio, with each issued by a company having the status of either a growth stock or a value stock. In the financial context of this terminology, however, every bond is really an independent piece of that portfolio, with the risk to the portfolio measured by its earnings power. That's why we use the term "traunch" to describe any potential short position created by an expected short sale or by an anticipated increase in the price of a security when it's priced below book.
A standard definition of a branch is one in which there is an anticipation of an increment in the price/earnings ratio of a security within a month or so. There can be many reasons for an investor to anticipate a certain performance, whether it's a gain in market cap, price/earnings ratios, profits, dividends, or any other positive effect. Any positive change that creates a potential short position in the portfolio is called a branch. One of the most common forms of a branch is created by an investor anticipating that a particular company will experience positive earnings during the course of a given year.
