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The Hazards of Low-Priced Stocks

I'm not sure Radio Shack has the culture to do anything remotely close to what I expect Best Buy to do and what Yahoo! did. In fact, there's no life left. It would take a miracle, quite possibly something more extraordinary than what Ford needs, for Radio Shack to subsist, even close to what it is, for much longer.

Don't take a chance on Ford just yet. Never take one on RSH. Consider a speculative bet with ZNGA. But, really, tread carefully with low-priced stocks. Stick with large, dividend-paying growth stocks unless you have a time-tested, well-oiled plan to speculate on beaten-down, sub-$10 stocks.

At the time of publication, the author was long FB and ZNGA.

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ZNGA $2.44 -0.41%
BBY $36.58 0.33%
F $15.91 0.95%
RSH $0.31 12.76%
AAPL $127.60 2.28%


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

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