Example of a day bagger
Let's say you've purchased stocks in the new biotech startup XYZ Labs. XYZ's share price is $5 per share when you invest, and you've made all your investments at once. So, the original price per share that you're working with is $5.
You've held XYZ for a little while, and their product is about to hit the market when other investors suddenly discover that XYZ Labs is a pretty cool stock to own. They rush to buy shares for long-term investing and drive the stock price up $6 that day. Since your original cost per share is $5, and the value of XYZ Labs has just gone up $6 in one day, XYZ Labs is a day bagger for you that day.
If those new investors came in at, say, $15 per share, the stock will become a day bagger for them on the day it increases $15 in a single day, calculated using the closing price for that day.
Day bagger vs. spiffy pop: what's the difference?
If you've been around The Motley Fool for long, you probably have heard another term that sounds a lot like this: Spiffy popping. The difference between a spiffy pop and a day bagger comes down to usage. Spiffy pop is a verb, as in "XYZ Labs spiffy popped!" and day bagger is a noun, "XYZ Labs was a day bagger for me today."
In reality, you should use both terms together, although not interchangeably, since they are different parts of speech. Just like you'd say a spring sprung, you'd say a day bagger spiffy popped. (I hope that clears things up.)
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