The Insanity

When a company is in bankruptcy or retains bankruptcy counsel, that is not the time to go buy thousands of cheap shares. Stocks are never too cheap to short or too expensive to buy. I am more likely to short a stock getting kicked down than rising exponential. There was more profit in shorting old GM at $34 but when the stock was at $5 and there was talk of bankruptcy thats was a good time to short as much as you can carry. But investors lose billions of dollars seeing a large pull back in a bad stock and buying thinking, "This stock was trading at $50 a share 8 months ago, it is bound to go to at least $25 from $2". While I have seen marvelous rebounds, I have seen more cases of investors pushing a stock down because there is a problem. But there is always money to be made in the market.