Recharacterization

You thought it was a growth stock. It traded at 30 times earnings. But that turned out to be oh so not the case. The company went from growing revenues 35% a year to 20% and then 5%, and it declared its first dividends. No longer a growth stock. Just a kind of blah, cash-harvesting company that paid a fat dividend and would trade at 12x earnings in the future. It had to undergo a recharacterization of its assessment on the Street.