Frank, it's a long story. Basically it started with the AFR publishing several articles which made claims that the company had failed to reveal that a couple of early clients in Australia had terminated and were no longer using the software, also revealing that there were professionals in the industry who were going to short the stock. A claim on non-compliance with ASX regulations (including not reporting the resignation of a board director on time) was also made.
The stock went into suspension and HotCopper got really HOT with people coming on and trashing the stock, nonholders, which triggered holders to reply often with equal heat.
Ridiculous claims were made, such as that the company was a shell company and had lied about everything, that it would go under, that Fidelity would demand their investment back...
Mud sticks. Some holders wanted out due to uncertainty. GSW has employed a reputable accounting firm in the US and also a good law firm. The accounts have been audited and they have released a statement that they are in compliance with ASX requirements. This did not settle things down. In the meantime several law firms sniffed a possible class action due to what they saw as misleading announcements. A class action has been filed against GSW. If you read back through several pages of commentary, you will be able to come up to speed on this recent event.
GSW released their quarterly and although revenue was up 22%, this didn't satisfy. When it opened up for trading, it fell and held briefly at 1.30, then when the class action was announced as being filed, it fell again to 1.00.
You can read all this in the comments, although understandably there is a lot of downramping and nastiness going on as new HC members keep popping up and making comments trying to convince people this company is a sham.
There is no proof at all that the major contracts announced (NA Williams especially) are not proceeding, in fact GSW is due to give an update in the next few weeks. Downloads of their app continue to grow throughout the world, indicating uptake, and it appears to be business as usual.
Did the stock get overbought on the amazon news? Quite possibly, as many people buy on good news and future anticipated earnings. Did the directors make mistakes in some compliance matters, such as not notifying in a timely fashion the resignation of a director? Yes, and this has been acknowledged and addressed by GSW.
I'm sure you know the old saying, that there are two emotions in the sharemarket, Fear and Greed. Greed probably drove the share price too high, fear is now causing people to sell out.
DYOR as always.
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