Mutual Funds/Hedge Funds/Institutional Firms/ Pro Traders are, for the most part, large block TRADERS (flippers, as many call them). They make the bulk of their money on extremely high percentage, short-term movements in securities.
Of course there are mutual funds that take positions and hold for long term clients, but they also utilize trailing stops and such. I'm not familiar with large institutions that take sizeable positions in stocks trading as low as this one does but I'm certain that management at those firms can choose to waive their own internal price threshold doctrines and take positions in these low priced speculative securities.