Re: buy low?
The company's future performance and profitablity, will determine the shape of the graph.
So the question is, why is it low? And when and why should it go higher?
Delta Air and Northwest Air are low. Would you buy them because they are low? You would lose a lot of money if you went around buying all stocks that are low, without figuring out why.
Is a stock low because the company is about to go bankrupt and the stocks are worthless. Or is a company having temporary trouble? How long will this trouble last?
If you saw KO in say 1998 at 80, then bought it at 65 in 1999 because it was cheaper, how would you feel today when KO is in the 40s. High stocks can go low, and low stocks can go lower.
I am not saying FDO will go lower. But before you buy, you need to find out why it has gone lower, and whether those conditions are likely to continue or change in the near future.
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