Anyone buy stock based on hoping of the stock having a bounce back?

What I am talking about is stock such as PEIX.
Which had a strong going 2 years ago with over 14 dollars per stock but dropped to 0.27 awhile ago.

Is it a good idea to buy the stock because they were doing great before in hoping of a huge bounce back?
Or is it stupid to invest in a dieing trend?

Are there any strategies involved in doing stuff like this?