It depends on the reason for the stock price collapsing in the first place. If the business is in a failing industry that has been replaced by a technologically superior product then it's doomed. Video rental stores come to mind - dead the moment Netflix appeared. Stores that sold music as CDs. On the other hand, companies can make mistakes - buy another business that turns out to be a dud - or launch a new product that's a total failure (Blackberry perhaps). This doesn't always mean the blow is fatal. JC Penney is another example. If a company has millions of satisfied customers depsite the company's failure to make money from its business then you have a potential for a turnaround. Apple wasn't making it as a personal computer company but had very happy followers and we all know what products turned the business around - and it wasn't the computer business.
Depends on the company. That's why you can't just "look it up".
The easiest way to find out is to read the recent headlines for the company, and then look at its yearly increase. If either or both don't seem to be doing well, then, you may want to consider closing your position, or paring it out and hoping it reaches a high enough price for you to take a small loss and close. But this is really dependent on the stock.
Very rarely. Say a stock is ￡1 and it falls to 10p. It is either going to go bust or let's say it doubled that's still only 20p.
If the com[any is in trouble you may get the shares consolidated which is always a bad sign.
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It depends on the company and the time span. Good quality stocks usually recover over time.
Sure. Look at the 5-year chart for Ford for an example.
That's basically my question. Do stocks ever recover after a dramatic fall? I've been looking it up and can't seem to find anything on this. Thanks for all helpful answers.
