Have you ever heard of the "dead cat bounce"? Well I think we're about to see one with Radio Shack (RSH). So just when every one thinks RSH is dead at .40 a share we hit the pavement and bounce up to, say .60 a share. that's a 50 percent return on your investment. If you have $10,000 to play with, this little maneuver could net you $5,000.
I certainly wouldn't recommend such short term speculating on such a distressed stock with anywhere near a majority of one's money. Any buying of any stocks below $1 that I do are done with small fractions of 1% of the total value of my account.
Umm No that is not a good idea unless you are so filthy rich you can afford to take chances like that, seriously $10K?? we are not even talking bottom fishing here, we are talking straight up speculation (gambling even). It could bounce- but why? its retail based for heavens sake. Right now for me the best thing is to sit tight and wait, neither sell nor buy. I tend to be very conservative in my investing. The market is still bullish and tax time is right around the corner. Wait and see what happens we could bust or boom depending on a few things, will gas stay low? tax repercussions of Obamacare?
Yeah, I personally wouldn't touch Radioshack with a ten foot pole right now. And if I did decide to buy it ) for some reason I cannot imagine such as them possibly being bought out for $1 a share or something), I'd only throw perhaps a couple of hundred at it. But I seriously doubt anyone is interested in buying them out, and if so probably not for anywhere near $1. Usually companies in such bad shape only have whatever real estate / brick & mortar / useful inventory, etc (minus debts) to fall back on as far as any sort of valuation. http://quotes.morningstar.com/stock/rsh/s?t=RSH
I'd say you should start tracking some of the higher dividend paying oil companies right now. I'm not sure that the price of oil has bottomed, but it's probably gotten close within the last few weeks. If oil gets down to the low forties, it will definitely be a time to start average in on some of the quality stocks.
I have been looking into HL(which was mentioned above in an earlier post)and from the way that they are tanking, I will be looking into them within the next few days. I'll probably invest a decent amount in them soon.
Methanol prices should increase by year end. Chinese companies are building huge plants all over U.S. in realization of demand over the next five years (and cheap shale gas) as the Chinese will guzzle more and more. This will help improve methanol mkt price and stock prices for companies like MEOH and CE.
