After the stock price fell, I kept going back to see if the same investors were as enthusiastic, and yes they were. Sometimes this has been in the face of both good news and bad news. Sometimes I have also thought that these investors were more interested in being part a group or message board they could identify. At least one answer should be due to some hard-core evidence of some kind. Don't hang on to a bad stock, you are much better off cutting your losses and marking it up to experience.
Companies do go bankrupt even in the best of circumstances.
There are some investors who watch for these companies to hit bottom and then buy. Also don't try and trade on news alone. Any news is usually already anticipated in the stock's price. The bottom line for Judgemental Analysis is that you should be VERY experienced. However, if your experience is less than 8 years, then you are far from seasoned in that you have not really experienced a severe downturn in the market.