Yes. The lower the PPS, the better the candidate for an R/S. Most likely an R/S won't happen though until after the liquidation if they want to keep a "Shell" of a company to sell later. Either way, the common SH loses. JMHO..I would sell to pick up the table scraps. A miracle can always happen, but how often do miracles happen.
20 years ago I would dabble in penny stocks. I almost always lost money. So my rule now is to avoid them unless the stars all align. Because 98% of them will lose money for the average trader. Some make $$ by scalping, and taking profits on a 5-10 cent gain (or loss). That only works if you have the trading tools (to keep the comminsions down), the capital, and trading mentality (discipline). Using options can help. This is a very risk landscape. 98% of the investors lose money IMO. The R/S and/or Dilution are the KILLERS.
