quarterly reports are out, page-30

I can understand why people would want to exit this stock. I scaled in back in August 2011 with an avg entry of 3.8c so I am under water as well.

IMO if you wanted to exit, do so strategically. The announcement is not really that surprising, given previous market announcements (or lack thereof) so panicking and dumping all of your holdings at once is not rational.

I personally am not selling just yet, but if I were, I would scale out - the same way I scaled in. If you are worried about SP dipping into the low 2's or lower that's fine, but you never know whether support holds or breaks. 2.8c and 2.7c are crucial IMO. You may wish to reduce your exposure but I wouldn't eliminate it.

Be smart about the way you execute your strategy.

ALL IMO.