Yeah sure, new crap can happen...
I get what you are saying OptsyEagle, and if one already owns the stock, tough luck & we have all been there, but if you don't, and the problems are visible via financials, etc., it's best to be patient.
Sure there are times when you will definitely miss the boat on a particular troubled stock by waiting too long to get onboard; as the saying goes: 'you snooze you lose', but
not really, as there is never a shortage of beaten-down stocks these days in any sector! There is always uranium stocks.
I would
not necessarily be against buying shortly after a reduced dividend; it would depend on the stock & other factors that you mentioned, but I would not immediately jump at the idea.
Had
thompsg been admiring the 'nice/juicy dividend' last July as opposed to earlier this week, & ignored the financials & bought at $10 as a result, he would now be down around -30%. Had he bought earlier this week, even if the stock were to drop an additional 20% after he purchased it, it would be better than being down -50% [-30% + additional -20%]. Easier to recover -20% than -50%.
Often times the cautious wait could make a big difference, even if you had just purchased 100 shares:
- 100 sh @ $10 = $1,000 [last July's price]
- current -30% drop = $700
- losses = -$300
- buy today 100 sh @ $7 = $700
- assume a drop of -$20% = $560
- losses = -$140
Btw, stop-loss orders can't always protect you.