Once a stock breaks clear support levels, (two lows at 40 cents in this instance) it goes into the intensive care ward. A break of support levels, ie the breaking of lows, indicates much lower prices to follow. And whilst the price remains below its moving average, in this case a 10 month moving average, no thought need be given to buying it. And of course as we discuss in the "taking advantage of business cycles class, Carlovers has a product that is easy to compete against. (Low barrier to entry, in econospeak.)