Strangely enough, all of that might not have been so bad. If you look at the stock, it's been extremely successful the past few months. It's more than doubled during that time period. So many companies have seen earnings declines only to be bid up by Wall Street on the news as the market continues its forward-looking predictions of a better economy.

The problem here has to do with some financing mechanisms. Reports are focusing on the fact that management took out a loan with a significant interest rate attached. Concerns have been raised over the move.

Well, here's the deal on Quiksilver: don't buy it. A 20% decline in stock price, on very big volume to boot, is not encouraging. The market might be signaling something here.

Now, I will say this. Obviously, the stock has been very strong. This big drop in share price could be met with buying tomorrow (for that matter, it could be met with buying after I submit this article!). Oftentimes, stocks that have been in an uptrend retain their momentum after a brief sell-off. That could happen with this name.

In my opinion, I think there are better ways to play the market euphoria that has gripped Wall Street. Quiksilver is well below $3 per share as of this writing. As such, it represents a risk. If you want to trade it, make sure you know that you could lose your money in the proverbial heartbeat. I'd go with more fundamentally sound names before I'd go with Quiksilver.

Disclosure: I don't own any company mentioned; positions can change without notice.