I would run as fast as I could away from a 3 dollar stock. I have whole journals worth of reasons from my early trading days. They almost always end badly! It has been my experience stocks under 5 dollars tend to drop faster and tend to stay low for very long periods of time than solid companies who's price is above 50. If I had to do it over again I would not touch anything below 50 bucks.. Ever!

As friend of mine once told me; there is a reason why they are 3 dollars a share. And its generally not good!

Consider this; the IPSU has droped 10% (40 cents) since January 3rd. If it drops another 40 cents it will have lost another 12% of its value. As you get closer to zero this % will continue to climb at a faster rate. If it loses a dollar then it will have decreased by 30%. A $3000 investment would then be worth $2000 and some change.
its not worth it!! RUN FOREST RUN!!!!

SD

Silver Dragon 

I would run as fast as I could away from a 3 dollar stock. I have whole journals worth of reasons from my early trading days. They almost always end badly! It has been my experience stocks under 5 dollars tend to drop faster and tend to stay low for very long periods of time than solid companies who's price is above 50. If I had to do it over again I would not touch anything below 50 bucks.. Ever! As friend of mine once told me; there is a reason why they are 3 dollars a share. And its generally not good! Consider this; the IPSU has droped 10% (40 cents) since January 3rd. If it drops another 40 cents it will have lost another 12% of its value. As you get closer to zero this % will continue to climb at a faster rate. If it loses a dollar then it will have decreased by 30%. A $3000 investment would then be worth $2000 and some change. its not worth it!! RUN FOREST RUN!!!! SD

stocks under $5 have no institutional support .............

Here is one from my journal from 2003: FNSR ( see attached pic from my journal)

If it was not for the 1 for 8 reverse stock split it would still be under 5 bucks.

At the time it was a good looking chart.

There was another one, HLTH if I remember the ticker correctly. Healthgrades.com was the company name I think. Anyways it was suppose to be the next big .com. I bought it at 3 and then sold at a 1.25 a year later. Ouch!! soon after it went below 1.00 and was delisted.

2 very good reasons to stay away!

SD

I think this statement, which I found buried in the last paragraph of the auditor's report in the 10-K, says all I need to know about this company:

...the Company’s operating losses, pension plan contributions and capital expenditures...have consumed a significant amount of the Company’s liquidity and that raises substantial doubt about its ability to continue as a going concern...

I guess it's time to look for opportunity elsewhere!