I heard one analyst today talking about Oracle, and he made a good point about IT spending and software. Going back a couple of cycles, what we've seen during these sharp inventory corrections that come along every few years, is that a disproportionate burden is felt on the hardware side, whereas software spending usually is seen as more strategic, and less likely to fluctuate to the same extent as hardware spending. I doubt we'll get below 4 again, but anything's possible.
As far as going below $ 4, I don't think the price means anything just now, with average daily volume for February at slightly over 3,000 shares. Even in January, the volume averaged about 12,700 shares per day, which wouldn't seem enough to move the stock one way or another. At 3,000 per day, anyone trying to sell (or buy) without limit orders is going to be the dhort end of the stick. Maybe I'll put an order in at 4 and a small fraction, but I doubt it'll get filled.
I can't help but think someone is trying to shake out whatever is left to be shaken out. We keep seeing these scary declines intraday. I'm in no hurry. If they want give the stock away, I'll take some too, but like you say, I'd need a firm offer at or below 4. Looks to me like typical small cap bottoming malaise, the kind of thing that makes shaving seem enjoyable by comparison.