You would think that it is probably better to recoup losses from this stock by buying at current levels and supporting the recovery of the stock. Yes there is a risk of losing more, but the company has no debt which makes it easier for it to recover rather than a company loaded with debt. Perhaps someone is running the ruler on the company and thinking that its better to takeover SRF given the current market cap than to start a business from scratch.
Looking at the BBG example, I'm sure that was a lot of money was made from the low .10's and to what it is now on.
SRF Price at posting:
22.5¢ Sentiment: None Disclosure: Held