From Barchart:

The cockroach theory in investing draws parallels between spotting one cockroach and uncovering deeper problems within a company, indicating potential for further issues. Just as one insect can indicate infestation, initial bad news from a company may suggest more serious underlying concerns. This theory serves as a cautionary reminder to investors to thoroughly research and consider all available information before making decisions. By critically assessing the initial signs of trouble, investors can potentially avoid larger losses in the future.



Read more at Barchart: Some Companies Are Full Of Cockroaches. Boeing Is One Of Them