In economics, a dead cat bounce is a small, brief recovery in the price of a declining stock. Derived from the idea that "even a dead cat will bounce if it falls from a great height", the phrase, which originated on Wall Street, is also popularly used to any case where a subject experiences a brief resurgence during or following a severe decline.
First of all, we need to know whether the 40% dropped in Vocs share price is justifiable. Based on my analysis, it is not. The drop of more than 40% is due to Vocs acquisition of I Connect at a high price of $160 million. Although, the acquisition price is high, I believe in the long run, it will help Vocs to become one of the world largest PR company and it will bring the stock price to the sky in the coming future.
Disclosure: I am currently long in Vocs with 5,000 shares, I am expecting Vocs to rally more than 10% when the earlier short seller cover its short position today.
However, as usual I will not hestitate to cut my long position if Vocs did not rally today as per my expectation.