Why Are These Stocks Deep In the Red Today?

Great Basin Scientific Inc (NASDAQ:GBSN) has plunged by 17.95% as the sentiment around the stock remains depressed. Shares of the company are down by 98.15% year-to-date, as Great Basin had $7.3 million in cash, $16.89 million in total assets, and $36.17 million in total liabilities as of September 30. Three funds that we track owned 3.9% of Great Basin Scientific Inc (NASDAQ:GBSN)’s float at the end of the third quarter.

Shares of Osiris Therapeutics, Inc. (NASDAQ:OSIR) have given back some of their recent gains as its stock has fallen by 6.79% on the news that Osiris’ public accounting firm, BDO USA, is resigning. BDO made this decision because (in the auditor’s opinion):

“The effectiveness of the Company’s internal controls over financial reporting as of December 31, 2014 should no longer be relied upon due to management’s identification of a material weakness in internal controls over financial reporting related to the timing of revenue recognition under certain distribution contracts.”

Because of the conflict, Osiris Therapeutics, Inc. (NASDAQ:OSIR) will restate its first and second quarter financial results and will amend its 2014 annual report. The company hopes to use Ernst & Young as its auditor moving forward.

Wrapping up our list of red stocks is YRC Worldwide Inc (NASDAQ:YRCW), whose shares are off 9.38% on the news that industry peer Knight Transportation (NYSE:KNX) cut its fourth-quarter earnings guidance to $0.31-$0.33 per share, mainly because of fewer non-contracts and lower revenue per total mile. Investors worry YRC Worldwide Inc (NASDAQ:YRCW) could experience the same type of unfavorable trends and report lower than expected quarterly results. Hedge fund sentiment towards YRC is positive, however, with 27 funds amassing 49.2% of the company’s float as of the end of September.

Disclosure: none