Is an extremely low share price and a long downtrend a sign of impending bankruptcy?

Question

For example, SIX.

Answer 1

not necessarily - company could be sold, liquidated (without bankruptcy), or continue operating.

Answer 2

It might be but I don't look at share price.

I look at cash flows and this doesn't look too good.

http://quicktake.morningstar.com/StockNe...

The price is so little that I wouldn't even mind buying a few shares like $200 worth.  Since the dollar has been very weak against the euro, there can be a chance that a foreign company saves 40% just on the weakness of the dollar.

Answer 3

It can be,

check the board of directors for  your company and see what they plan on doing in this economy.

Rememeber, investing is in cycles, when the paper assests ( stocks, bonds, etc) are down, usually commodities ( gold , silver, wheat,etc) are up. The trick is to find the cycle that is going up and invest in that,

right now with a weak dollar, gold is a good investment.

Answer 4

Yes.

Answer 5

Yes, the market know more than the average investor.

LISTEN TO THE MARKET!

Answer 6

These are good signs of danger. Unless you can research the company and be satisfied, walk away. There is more fish in the sea.

Answer 7

SIX is deep in debt and this economy won't be helping them recover anytime soon, bankruptsy looks likely.