If I may give my own perspective on this one Cabbie ;) I assume...

If I may give my own perspective on this one Cabbie I assume your friend is a longer term holder rather than a short term trader.

In my charting work I look at recent price action in context, not just the last few weeks or months but even longer depending on and giving respect to the length and nature of the preceding trends/price movements.

MNS has clearly been in a severe downtrend for 3 years, punctuated by numerous sharp but short-lived rallies from shall we say 'oversold' conditions. Looking at my (log scale) chart you could easily say another rally is due at any time. Also, I am sure there were many past indications on the chart that provided evidence for a turn but given the ongoing context, hhmmm... It's fairly common to see similar type rallies in many hard down trending stocks that ultimately fail - more often than not. Hence the need for context and to distinguish between a rally vis-a-vis a trend in motion or one with the probabilities in its favour to commence.

MNS is one of many stocks in HC still talked about a lot, that for a period of time multi-bagged based on a promising good 'story', but has since come crashing back to earth even though nothing really might have changed. What is left for its many believers appears to be nothing more than 'hope'. That is how I read it without wishing to be disrespectful. I have been caught in similar in the past myself.

If I was holding I would be looking to exit on the next rally.