Stocks can always go lower

Sinking Ships - When a stock has dropped a lot you may think that, "it can’t go any lower," or that it is "a good bargain." Especially with penny stocks, you need to avoid this type of thinking because many sinking ships don’t ever rebound, and they can go lower, and they aren’t good bargains just because they cost less than before. I've seen stocks simply disappear from view and never recover.
Always check the underlying fundementals - especially return on assets managed. If it's not stable or going up then walk away.
Kevin Bauer
http://www.stocktradingresources.net