Sometimes, the price can go to zero.
It is incredible how much wealth disappears when a bank goes bust. Just one year ago, IndyMac's market capitalization was $2.9 billion. Before the regulators stepped in, the market cap had fallen to just $28 million.
I had a quick look at analyst estimates for IndyMac stock. The last recomendation was a year ago from Lehmann Brothers, who suggested to investors that they should go from "Equal Weight" to "Overweight" whatever that means. Since July, the analysts went strangely quiet. When a company is in trouble, it is the silence of analysts that damns a stock.
(Housing Panic is running an INDYMAC, FANNIE MAE AND FREDDIE MAC FAILURE SPECIAL EDITION - well worth checking out)