Stock Markets Exposed

Should I buy a stock that has stopped paying Dividends and is tanking in value?

The stock went from $50 to .38c value in 2 years. They paid no dividends in the last quarter. As a general rule, is it best to invest and wait for growth, or avoid this company? Should I invest when others are afraid? thanks guys

Public Comments

1. Simple answer... No. There is a reason why it is now under a buck. I would steer away from penny stocks in this economy. I would buy something that is strong and will recover as the economy recovers. Chances are that this stock won't. Focus on strong companies that you know will survive this economy... Apple, Intel, Mcdonald's, etc.
2. that all depends on how much risk you can handle but if it not paying dividends and it is a long term investment you wont be making money why the economy is in the dumps
3. that all depends on your risk tolerance I would not buy that one
4. Should you invest when others are afraid? Absolutely yes. But you have to choose those investments more carefully. The dividend isn't so much of an issue if it's a strong company. But from $50 to less than a dollar is way too much of a drop. At that price, the market is probably expecting bankruptcy.
5. stop paying dividends meaning company is lacking capital so they are doing everything necessary to have more cash on hand to run the company. tanking in value is because the entire market is down. usually if a stock goes under a dollar become penny stock it usually means this company is having some serious issues. unless you believe when the market turns around this company will be able to survive and profit in the future, don't invest in such company.
6. Bad signal when a company stops a dividend. Anything under a bucj aint worth it for the usual investor. Stick with established companies, with long standing products & dicidends.
7. I wouldn't deal with the investment scene right now. What is too good to be true, is certainly too good to be sincerely true. I don't want for you to have a horror story to tell me or yourself. Ultimately, we will all have to wait for a moment until the economy settles down. Then, you can jump in there and take a 'chance.' Right now, there is just a great deal of loss, not only in the United States, but also around the world. I wish you much success. Remember this, What shall we then say to these things? If GOD be for us, WHO can be against us? - Romans 8:31 The Lord daily loadeth us with BENEFITS, even the GOD of our salvation. Selah. - Psalm 68:19 Peace!
8. if you think it will regain value (and can afford it) buy a small amount.
9. Pers Responsibility is right; Dump it. And...Eventually this economy is going to jump back up. I think that, maybe pay attention to what might sprout out of it, then invest in it, Then sell it when it reaches its hot point. I mean once it finally settles, you should have quite a nice haul.