Here are some other possible explanations (which may or may not have any merit):
1) There is a lot fear in the market due to a major crash about every 8 years. Fear is causing indiscriminate selling which induces more selling due to margin calls.
2) Some holders of shares are being forced to sell due to cashflow needs (governments that rely on oil revenue), excessive leverage (margin calls), or other investment losses (big losses in energy assets may trigger selling of other assets to rebalance allocations or other reasons).
3) There is some unknown pending crisis looming. Deflation, currency war.
While all those may have merit, one thing is absolutely clear: once a stock has had a sudden fall–regardless of the “original” reason(s)–the fall itself will cause many others to fear that everyone else must know something they don’t…causing them to sell.
It’s like if someone runs out of a mall in a panic. At first, maybe only one other person who sees that gets scared too, and also runs out. But now that two have fled, a couple more people get freaked out and exit. And now that four people have gone running out in a panic, this pushes another eight people past their fear/uncertainty threshold, and they’re out of there. Rinse and repeat…and you have a stampede for the door. It’s human nature…and also fits with the teachings of complexity theory. And if you 1) don’t understand that, and 2) don’t have a deep conviction in why you find the businesses you own attractive at the prices they’re at, then, at a minimum, you won’t be able to take advantage of the panic. Or worse, you’ll make the tragic mistake of selling out at an unreasonably cheap price.
I think this is exactly what is happening with Skyworks now. During the fall, it fell–for whatever reason. Then it fell some more when people had their yearly Apple-is-doomed moment. And once it started falling, many people figured something must be wrong, and they sold…and now it’s at a stupidly-cheap 10X current-year earnings. Same thing that happened to Apple back in 2012-2013, when it got cut in half…only to double in the next couple years.
As Benjamim Graham said, Mr. Market is there for you to take advantage of. But if you let him inform you, you will not do well investing.