I agree with you. I have bought back in to CERP in the past few days, after being a shareholder from back just after uplisting to the NASDAQ when it traded above $4. I lost almost all my initial investment as I was long on the company (still am) but didn't have the smarts to sell at a loss in time to recover anything worthwhile.
Cereplast has market-leading products, very valuable IP to protect them, and operates in a market with enormous potential. There is still downside risk IMO, but the upside potential is too great (from here) to ignore. Based on what Scheer said in the conf call, the timing sounds about right for the turn-around, and once they are cashlow positive the share price should recover quickly and even appreciate dramatically.
Long on CERP (again).