Has the Company Taken the Following Steps to Turn the Business Around?

Consider a company that has stock trading at around $10 per share when it is operating in a normal environment. When the economy falls into a recession and the company falls into a difficult situation, it loses 90 percent of the stock price and is trading at around $1 per share. After careful analysis, you feel that the company will survive the downturn and you get into the position at $1 per share. The company slowly starts to recover. The rate of recovery tells you that it will take another three years before the company is able to generate the same kind of revenue it did pre-recession. You can reasonably assume that the market will give the same kind of valuation as a normal revenue generating capacity, so that a $10 per share price rea....