So I track thousands of C's and pattern their movements after news like this. This C is slightly unique in that it hid reality and was rightfully punished. We all thought the bad news pre-earnings was priced in, we were wrong. Anyways, after 3 significant drops including this one, this C still has 2 weeks and an additional 10-20% to drop. I would set a stubborn long position around 1.75 and keep buying in increments every .15 it drops. GEVO, RSH, OCZ - are all examples of hidden info that punished the stock like mad. I know they are completely different sectors altogether, but I'm speaking in market psychology and reaction to news. We can all read the numbers, but we cannot read people's minds. They know the next six months will be painful. I also believe that there ABSOLUTELY will be a dilution.
Basically, do not count on this thing stopping here. Go look at OCZ, RSH, and GEVO, at any point you would think it HAD to have hit bottom but kept going. This C will most likely see $5.00 again, but not until the leaves turn orange.
When you buy a stock, pretend you won't look at it for five years. (Warren Buffet rule). Just start to fight around 1.50-1.75, I'm throwing in the big guns in that range.
You can't be serious. This is not in your control or any other retail investors, MM's will take this down to mid 1's by end of next week if not sooner. I truly wish you are right but even you know deep down that there's no stopping this falling another 30% next week.