Well I can't really answer as to whether it's justified, but if you look at the chart in August after the previous downgrade (the August forecasts were already around 10m below what some analysts had predicted), you will see the selling was a bit overdone ultimately and the SP eventually rebounded partially over the following days. Maybe that happens again here, I don't know, not for me to predict, but from a technical perspective you'd want it to hold the $2.10 area or it may test support around $1.90.
On the face of it you could make the case it's excessive, but successive downgrades is going to certainly hit sentiment and it may be more of a consequence of future outlook taking a hit than solely a reaction today's numbers & announcements (just speculating there though). Here's the chart either way. Best of luck.
GEM Price at posting:
$2.11 Sentiment: None Disclosure: Not Held
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