Strange action. Last it went (and stayed) below $40 was on the day of LG news, plus it was a major drop on the day, drawing massive short sell. Next day it was nicely above $41 when analysts weighed in saying sell-off overdone. Then, mgmt did an OK call pretty much saying that LG is a non-issue and confirming investment thesis and stock almost rebounded with most sell-side price targets at $55+ (of course, there are a couple buy-side strong sells)
Now we see a multi-day drop taking it to below $40. But, fundamentally, not much changed from $50+ down to $40 (well, maybe losing some rev. from LG). And that is a 20% fall!!
There may be some technical arguments around options expiration on Fri etc. But seems that this is a risky game to play for shorts (taking it to a high-momentum day lows) into earnings unless they already bet that earnings will be off. And earnings will have to be off significantly to justify going below $40 (even missed Q4 won't do it, it'd have to be bad outlook, and nothing is pointing to that).
All that said, the stock does not seem to be finding new high-conviction buyers to step in at this levels.
Seems either or a combination of the following--a) there are serious concerns about valuation in general that underlie all this (seemingly technical) volatility, b) some insider (or those with insider info) selling into earnings, c) shorts not being prudent.