No, this is the news and it's good but not as you say.
4:12 pm Gogo: S.A.C. Capital discloses 5.1% passive stake in 13G filing (GOGO)
PSEC was taken out of the S&P 600 so all the funds that invest in it had to liquidate the stock. There is no fundamental reason for the drop other than this. The company is doing great.
Sentiment: Strong Buy
Recent positive announcements on Panasonic, VSAT, etc. Yes, they existed before the IPO, but appear to be getting stronger. GOGO's technology is good, but not the only game in town. They do not have a unique product. I am long at 24.
Fear creeping in on competitive systems. These competitors are getting all the positive press and GOGO is getting none.
The point is if Panasonic has better technology, which we don't know yet, this is a threat to GOGO. That's why the big sell off. Uncertainty on a very volatile stock.
Remember, the market is transparent. You don't know anything that others don't already know. Smart money is selling in here. They are certainly not buying. The GOGO product seems to be well accepted but the perception must be that they can't make a lot of money on it and that the stock is overpriced. I hope it rallies because I am long at 24.