It is not bogus at all. Happens all the time. Silly to do it if...

It is not bogus at all. Happens all the time. Silly to do it if you are still bullish the stock or you intend to buy them back again - there are anti avoidance laws that cover this - can't remember the details but something like 'you can't have sold them with the intent of buying them back ie just to realise a loss' but many many people get dissolutioned with a stock and have capital gains in other stocks as you point out and then give up and sell the one with a capital loss - and they are price insensitive because the loss becomes valuable to them once they have decided to move on.

MBE looks like it has a bit of balance at the moment - I was hoping to jag some under 4.5c but others have beaten me to it and paying higher - if it turns out they have spent their bullets it may come back but looks less likely.