That argument is only valid if you are a trader chasing gains on...

That argument is only valid if you are a trader chasing gains on the short-term SP movements. For an investor it does not make sense because you should buy when the price is below your defined fair value including your margin of safety for the stock. Its all about finding the favourable expected payoff for an investment that you intend to hold for years.

I am not sure the stock will go all the way to 40c. No one knows that for certain, in fact. Perhaps instead it will go to 56c only. Or perhapps it has bottomed already and will start growing after the next report. Then the comparison does not look so obvious, does it?

Also, an investor makes money by spotting when the market is wrong and then holding the stock until the matket corrects itself. Hence, it is usually a good practice to not to care that the market doesn't care.

All my opinion, DYOR.