When a stock price goes down to .0001, what are the chances of it coming back up?

Answer 1

It depends. Remember, in the short term, stocks are based on speculation. In the long term, its all about earnings. That determines if you will have more buyers or sellers.

Answer 2

Depends why it went to that level and what is going on with the company to make it's stock that low. OTC stocks and pink sheets trade at these levels all the time. If it was a NYSE stock it will lose it ranking and be put on the non-sanctioned markets. You can trade anything on these! You can bard put option on things with negative value and bet on that! It's not the underlining worth that is relevant, but rather the direction it will go - even in the negative! But this is very complex stuff that is very risky and not mainstream by any means.

I would say don't write it off. There must be a reason they didn't go bankrupt before as the levels apporached so low because otherwise it would have never gotten that low. All depends what is going on.

Answer 3

In my opinion.
It gone. One thing people need to be aware of is Stocks a easy money maker for the CEO and he protected by Corporate Laws from liability.
See "FOR EXAMPLE"!!!, if I can sell people 250,000 shares of $1 stock with the impression it going to become a $35 stock in the next six months. Then I can make a tidy profit as CEO, if I getting paid $500,000 per year. Then the company goes under and the stock investor lose and of course the CEO is out of a job. But, due to my corporate expertise I can get hired at another startup company I have in mind.
Now here your example. When you invest you get these little brochures about this really good stock that going to really make you all this money. In the fine print they have their discloser about this not an offer to buy or sell and Blah if you you lose your money.My neighbor gets them all the time.
I going to get you a link and BRB!
My neighbor ask me about this stock;
http://finance.yahoo.com/q?s=hprd.ob
I said this crap. At the Time she received the Mailer it was around $2.48 Check the Graphs!!!! What happen is everyone that got a mailer jumped on the band wagon pushing the Stock up!!! Somewhere someone who had invested in this company @ .05 sold @ $2.50 or more, see the activity, the sell was obscured in that. Now the people who bought @ $2.50 or more are sitting on 10 cents a share wondering when it go up. When actually as my first sentence say; "It gone".

Answer 4

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For investors who can’t afford shares of Google or Apple, the potential gains from trades like this are too good to pass up. So penny-stock trading thrives. With a relatively small investment you can make a nice return if the trade works out.

Answer 5

Back up to what? Is the stock trading on the pink sheets (.pk)? Normally there is a reason for a low stock price. You cannot out smart the market because it reflects all available information.

Answer 6

Usually this happens to company which underwent some unusual events. Like a financial scandal, or for drug company any FDA violation, or for technology company any conviction of patent infringments.

If there is a chance those events were manufactured or wrong and company is vindicated then company can make a come back. Usually that would be a big come back.

So, if you think that in case of your company that cannot happen then I don't think there is any chance that it would make a come back

Answer 7

owens corning went to one cent because they bought aspestos companies and were getting sued , the congress bailed out the aspestos liability for them and the next day it gapped to 4 dollars then ran to $27. many pink sheets have gone from .0001 into the dollar range , its a huge gain if you can hit it. there are thousands of pink sheet stocks most are bunk. with billions of shares ...a company with a modest share count 25-100 million can go as low as .01 but not lower im not sure the phisics of it . heres one i've been watching for a few years waiting for a bounce ESCI http://finance.yahoo.com/q?d=t&s=ESCI.PK one buy sends it up 50% , but a company with billions of shares trades at .0021- .0022 with one trade,

Answer 8

1

Answer 9

Depends on whether the shorts have covered - it can't hurt to put in a limit order to sell.

Answer 10

Not very likely. Who would want to buy a stock that low??