Comstock Inc (LODE)

[TMLonggun]

That's kind of odd too, normally they go until all questions are answered. The answers might be BS but at least you would get an answer. I have even listened in the past to CCs that went to almost 2 hours just so they could answer every common shareholder's question. Now they won't even publicly answer us? This has been one of my complaints with lode, the common holders do not appear to matter that much to management.

I can see why C would be hesitant though since the stock has been below a dollar since Feb 4th. Being below $2 is bad enough but being below $1 is worse since they will be delisted eventually. Normally you get a notice after 30 days and it is a material event so they have to PR it but lode is coming on 90 days below $1.

By actively talking about delisting the stock will probably stay under a buck. While ignoring the delisting and hyping the stock above a buck has a chance that it would reset the clock. It is not explained how this timer works, so it is unclear whether we are "safe" if we have a single day above a buck. If we just need to periodically poke above a buck to avoid it, lode is in okay shape in that respect.

The exchange can make exceptions and hold off on delisting like they did after 9/11 or 08. I don't think this applies to or helps us now since the stock market (sans lode) is at all time highs.

I did some more reading about this process and apparently it works like this: Lode traded below $1 for 30 business days feb4- mid March. LODE definitely received a notice near the end of March. From the the date of that notice they now have 180 calender days to get above $1. So they have approximately until the middle/end of September before they are delisted. Which is way more time than I would have first guessed.

Long ago I posted about how some juniors experience huge price increases when they uplist, but lode has only languished and paid a premium for being there. Profits have always been much more important than a listing. I would rather lode be profitable on the OTCBB than flounder more publicly on the NYSE.

If they produce profits they will probably be above $1 and if not it is quite likely they will be delisted or, perhaps even more likely, will use another reverse split to keep its price above the listing threshold.


"As a shareholder, you should seriously revisit your investment decision in a company that has become delisted; in many cases, it may be better to cut your losses. A firm unable to meet the listing requirements of the exchange upon which it is traded is quite obviously not in a great position. Each case of delisting needs to be looked at on an individual basis. However, being kicked out of an exclusive club such as the NYSE or the Nasdaq is about as disgraceful for a company as it is prestigious for it to be listed in the first place.

Even if a company continues to operate successfully after being delisted, the main problem with getting booted from the exclusive club is the trust factor. People lose their faith in the stock. When a stock trades on the NYSE or Nasdaq, it has an aura of reliability and accuracy in reporting financial statements. When a company's stock is demoted to the OTCBB or pink sheets, it loses its reputation. Pink sheet and OTCBB stocks lack the stringent regulation requirements that investors come to expect from NYSE and Nasdaq-traded stocks. Investors are willing to pay a premium for shares of trustworthy companies and are (understandably) leery of firms with shady reputations.

Another problem for delisted stocks is that many institutional investors are restricted from researching and buying them. Investors who already own a stock prior to the delisting may be forced by their investment mandates to liquidate their positions, further depressing the company's share price by increasing the selling supply. This lack of coverage and buying pressure means the stock has an even steeper climb ahead to make it back on to a major exchange."

http://www.investopedia.com/articles/02/032002.asp