The high P/E doesn’t concern me as much due to weak earnings, but the somewhat high P/B does. Norrhydro’s P/B ratio is 1.6. This feels a bit high, as in my opinion, one shouldn’t pay over one for this due to the lack of demonstrated performance and also the high risk. A better “margin of safety” would be obtained by buying below book value, e.g., P/B 0.8, which would be a 50% lower price from about €1.2 → €0.6.
It wouldn’t be surprising if we get a stock exchange release in the coming days stating that Yrjö Trög has sold more shares, and this was the reason for the decline.