Today the news outlets were all a flutter with the Apple announcement that they are going to be transitioning away from a graphics chip manufactured by UK based semiconductor R&D company in the next 16-24 months. So, according to the Google displayed stock price information (powered by yahoo), the share price for the Imagination Technologies Group was at 268.75GBX (aka £2.68 3/4) at the end of the day on Friday 31-03-2017. At market close the following Monday after the news broke the price was now 102.25GBX.
Knowing nothing about "Penny Shares", I am going to pose a hypothesis today and see what happens over the next 30 days. My thought is that the "market" instantly overreacts to bad news, especially with less traded shares outside the FTSE100. If at some point today, now that the stock price is at rock bottom, I were to have purchased some of these shares, would the price begin to recover (certainly nowhere near last weeks high) over the next four weeks or so. Would there be a window to make a profit under the assumption that the news today is as bad as it gets?