Stock play: rock bottom after rock bottom

Discussion in 'Trading' started by Option Trader, Dec 1, 2005.

  1. In my opinion, the best stock to buy is the one which simply CAN'T go any lower; i.e., even after it was a very good buy at e.g. $12, it still went down to $8 because e.g. they announced they would not file a statement on time.
    I thought it would be a fun/ good thing for people to share what stock they feel fits this description.
  2. Until it hits $0.00 it can still go lower.
  3. Who determines at what point the stock can't go any lower?
  4. For clarification:
    For starters, you have identified a value stock, based upon LOW price, but strong underlying assets and potential etc. Yet people who short stocks with bad news, ignore the fact it is alrady a value, and ignore the fact the news is just a repeat of an earlier syndrom. The confidence it won't go any lower is because it took its best dip at the time of the news.
  5. nassau


    nvda last october, kkd, tasr, rigl, genr, pgcn.ob, tivo, emrg,rfx

    any stock that states we are adjusting or have irregular accounting issues..

    I also look for corporations that have been incorporated offshore and their accounting is harder to evaluate...sooner or later they end up having issues...if you evalute their earning reports and the fact a lot of their answers are vague.. who knows
    Mrvl is on mine and others watch list ... 5 -60 good to be true...looking to start buying puts out of the money....

  6. Also not stocks that took steady declines over time, rather a big dip, and then a second big dip on basically the same news. For example, if RIGL would take another big dip with no sound reason, other than maybe shorts looking for another excuse.
  7. kkunitak


    how about a gratuitous pump for nabi? :D

    Seems like nabi has confirmed a reversal based on the moves over the last 2 days, and should be good for another 30-50%, imho.

    read my post in the "stocks" forum.

  8. Mvic


    PFE seems like a great value here.
  9. LOL. Buying a stock you think can't go lower is also no guarantee that it will go higher. Stocks with the characteristics you defined are often dead money for quite some time. (See COO)

    If you want to buy pullbacks that will bounce - and it is a good strategy - then you want to stay away from those otherwise solid companies that have warned or been hit with truly bad news. You want to look for companies that are simply oversold technically, without serious news or issues. (See my best trade last month, KOMG. Or ZMH right now.) They will tend to attract buyers more readily, and give a nice trade off the bottom.

    Your trick is to find the technical levels that are statistically valid, and establish exits.

    For a confidentiality agreement and 500 grand I'll share it with you.:cool: