Fear of earning happened before in early Aug. However, once the earnings were out (Aug. 13/14) people realized it was not that bad after all. Then a rebound ensued.

This is likely to happen once again. After the strong rebound a few days ago people suddenly realized earnings might not come in very strong after all. They freaked out and trying to lock in short-term profit.

Reflecting on what Mr. Yang the CEO said back in Aug:

"looking forward, some of our customers in the agrochemical and pharmaceutical end-markets around the world have been affected by the challenging global economic environment and have experienced a significant slowdown and/or decline in growth in the second quarter of 2009. As a result, they have reduced their purchase orders for deliveries in the third quarter of 2009 in order to adjust the timing of their planned commercialization of new products as well as reduce their inventory levels. We believe we will still be able to achieve top line sales growth this year because we continue to be selected as a reliable and preferred source of fluorinated specialty chemicals by our solid base of long-term blue chip end-users. We are confident that our annual top line sales growth can continue in year 2010 based on our strong project pipelines and as the global economy recovers.”

That likely caused the stampede out of the door. But once the stock is punished so hard and management reaffirmed its Q4 outlook on the conference call, things should look up. Big time.