Let the battle of patience begin. Longs obviously were outnumbered even though the forcast for a turn-around was very good. So, now it's a matter of who is willing to wait. Most of the shorts who dropped in have made money and won't be interested in waiting a month to see if this really will drop to 3 again. So the good news if you are long is if you can wait, short covering should give us a gradual rise in stock price. A short who doesn't feel like waiting a long time for another 50 cents on the downside also wont want to stick around after this starts going over 4 again... and the cycle begins. It can go both ways though, if the longs give up, we can keep dropping until the process plays out.
The other thing going in our favor is that the stock is tightly wound. We all know any little update from the company - a new partnership, adding more states, a new product enhancement, etc. will cause a very quick pop (another reason shorts wont want to dwell here).
I'm waiting for the gradual gain and bounce. Very little to lose on the downside at this point.