Stone believes the choice was made due to "challenging market conditions," but concedes that, "when you put that together with a pre-announcement by way of an 8-K on a Friday evenings, the lack of visibility might cause some people to sell first and ask questions later."
Another potential issue for GSE is a slowdown in the mining of precious metals due to a sharp price decline for those commodities over the past several months.
Still, a 38.55% selloff would appear to leave quite a bit of margin for error. Business may be bad at GSE, but a turnaround in Europe and in the weather will likely make it look a whole lot better. And both of those events appear quite plausible.
-- Written by Dan Freed in New York.Follow @dan_freed