are the fundamentals in trouble..........or just that it used to be a 75 dollar stock and now its 10 that makes it so bad............or that its a "FAD" ?
P/E is sitting at 6.24 with the current PPS of $10.21. If it goes to $5 then the P/E would be 3.12.. that wouldn't make much sense! My investment philosophy is geared more towards finding value at low P/E in beaten-down fallen angel type stocks. I have long term holding goals for these stocks. I can't day-trade because IB didn't give me a margin account so the only privilege I have is to buy stocks. A year down the road, let's say that one of them goes BK and the other one is a triple bagger. Well, I've more than broken even right there. If all of them went BK, well - it goes with the territory . I know that there's all of the risk in the world in stock ownership.
There are a TON of stocks with P/E ratios of 5 or less right now; many under 3. And they're not swimming in debt, either. And many of them have been HAMMERED, down anywhere from 20% to 70%. They are established businesses, selling real things that real businesses and real people buy. They've been around for a long, long time. I like to perceive myself as a value investor, and while not a veteran, I've seen some extreme volatility (just look at June). I've never seen such a merciless and indiscriminate equity selling wave. Absolutely brutal. What's the problem, then? Mr. Market hates lack of clarity going forward above all else.