Expert: Wong Chin Woon - 6/14/2006

Question
hey, im currently in the stock NGS.. and its going down a lot since I bought it
at 23/share. its not at 13 and some. I was wondering if a stock can go to 0 or
negative? and if you think my stock will turn around in the fall when ppl start
buying gas cuz its a natural gas stock. k thanks.

Answer
Hi Jesse,

lol...how can any stock go into negative value? Does that mean if you own the share and when it turned negative, you actually own the company money? It does not make sense at all.

There is always a price where the Exchange deem that they have to stop trading that share. In usual case, this price is coming near to zero. This is a measure to prevent the share price going down to zero! And why the price is near to zero could have couple of reasons. One of the major one is company is in real bad financial health or it is near to bankcrupt.

What I see in long term NGS is it may come to test $6 mark. However, for the immediate short term, probably a pull back will happen tonight and I think it should be abled to reach $15.50 level within next week.

Cheers!

Wong