Stock Question Regarding IndyMac?

Question

I have had a pretty decent week with my IndyMac stock. I have a couple of ideas regarding the stock and wanted to get someone’s input that has more experience than myself.

I bought two thousand dollars of stock at .10 cents. Today the stock is worth .15 cent.

Option 1: Leave the stock alone and hope someone buys the company. If the stock were to ever hit 1 dollar I would make 18K.

Option 2: Sell the stock tomorrow morning and re-buy the stock next week hoping that it will drop back down to 10.

Any thoughts?

Answer 1

A word to the wise - no one ever went broke taking a profit.

Answer 2

Sell it and take the profit while you can.  Someone will buy the assets, not the company.  There is no equity.

Answer 3

Keep a close eye on it. Right now if you sold it with a gain of .05 cents you would ony make 100 dollars - commissions.

It is best to avoid stocks that cheap. Since IndyMac is in danger of being taken over by another institution and is basically defunct holding on to the stock might wipe out your investment. A buyer will void all stock currently outstanding. When TWA went bankrupt their stock became worthless.