Thats where we disagree. At some point any level of 'discomfort' investors may have with a company will be built into the price -- and then it will stabilize and bounce. That price-level will vary from stock to stock depending on specific situations.
Its all a matter of risk/reward. Once the reward gets high enough, the risk will be compensated for. So there is no need for companies to change behavior for a bottom to be established, IMO. The question is, at what price level will that bottom happen -- and this is where everybody has their own opinions. Some will say P/E of 2, some will say cash-on-hand, some will say 0. Nobody knows for sure.
Personally with the lack of borrow-ability for so many names (since shorts have maxed it out), incredibly low P/E's, starting to see lots of buybacks and insider buys... I think we are much closer to a true bottom than before. Thats why i'm long some names which I like, otherwise i'd be all cash :).
-Fernando