If you use that rationale, then you should buy up Adelphia stock. They are the 5th largest cable company in the country (and was my former employer, but I also worked for Worldcom. Hmm, bad trend here.. :>).
Anyway, their stock is at 0.01 right now. Some cable company is going to buy them out, probably the #2 or #4 cable provider. (#3 is already in merger processions with another cable company, so they can't be bothered with this right now)
But buyouts like that don't always help the shareholders, since there are so many other people that will get paid first - bond holders, etc.
My portfolio includes 6 major companies that have gone bankrupt in the past 24 months - All bought when they were still flying high. All are worthless now, delisted and gone. If you can afford to lose the money, then go for it, but be aware that the odds aren't in your favor.
