the share price of a company i have shares in have dropped to £1.02p

[stokemaveric]

is this company in trouble would you think???...the share have dropped dramatically over the past month or so..what happens if they drop to under a pound a share??? i think a takeover of the company might be in the offing.should i sell or hang on to them??

[Mick-Talbot]

who is it stokie?

Never panic sell.

[stokemaveric]

lol hi mick...i have shares in a large international logistics company..it looks like they are in trouble to me...

[dzug2]

£1 a share is an entirely artificial 'barrier' though it can be bad psychologically. It makes no difference to the basics of the company which is what the market should take account of.

[BigMac]

Do you NEED to sell? If yes, then sell. If you don't, consider the following:
i) why did you buy the shares in the company?
ii) are the reasons still valid?

As mentioned elsewhere, the 'penny share' tag is purely psychological - if that's what the company is 'worth' according to the market and you still fundamentally believe in its business model and prospects (does it have major business in/with the emerging markets, for example?) then it's a buying opportunity.

The share bulletin boards have a very simple initialism, though: DYOR = do your own research. That's not meant sarcastically, rather that you can only determine whether you should buy/hold/sell on the basis of ALL relevant information - which includes your own circumstances.

[stokemaveric]

thanks dexug and bigmac i dont have to sell at all i was just wondering what happened if they drop below the £1.00 a share mark...i thought if they dropped really low then that particular company would be ripe for a takeover bid by another larger business...

[TonyV]

Stoke - what price did you buy them at? - normally price increases if takeover is about to happen - can you afford to sit it out?

[stokemaveric]

hi tony they have dropped dramatically from march 22nd when they were £1.31 it has been a decline ever since...and an even bigger decline from previous dates...i dont gave to sell in the slightest but im not really up on the stock market..i brought the shares as a bit of an investment for my 2 sons in the future...ill just sit tight i guess...

[seadogg]

You need to appraise your whole portfolio of investments in making a decision, which is pretty well what Big Mac was hinting at in the last phrase.

[TonyV]

Stoke - just do some research - as they say prices can go up and down - just depends on what your investment is in them

[stokemaveric]

thanks tony i will monitor the situation....

[alavahalf]

If you worry about the price of a share then dont get involved in buying them. It's not a great idea to invest in one share and then hope that it goes up.
If you are 'not up' on the stock market, then why not spread the risk over a number of shares, and invest in an investment trust savings scheme. You invest a chosen amount every month, and over the longer term you will iron out the peaks and troughs, and at the same time you will benefit from something known as ..'pound cost averaging'.
http://lmgtfy.com/?q=pound+cost+averaging
It's an altogether better and safer way of investing ... and you should'nt loose sleep over it..!

[dzug2]

<<i thought if they dropped really low then that particular company would be ripe for a takeover bid by another larger business...>>

It's one possibility out of many - certainly not the most likely. There would have to be other reasons as well. You'd need more than just the share price to go on.

[venator]

You can't tell much from a price fall by itself - it's like saying "my temperature is 100 degrees - am i going to die?" It could be malaria or a sniffle.

google the company - see what's in their publicity.
Check them out on a site like Yahoofinance.