8 Penny Stocks Get Delisting Warning
Robert Holmes
01/04/11 - 07:00 AM EST
BOSTON (TheStreet) -- The U.S. stock indices finished off 2010 with big gains in December, with the S&P 500 up 6.5%, and the Nasdaq rising 6%.
Despite these gains, eight stocks trading on the Nasdaq and New York Stock Exchange were pushed closer to delisting from the exchanges as share prices languished below $1.
All were notified in December that they are in violation of a rule that requires their shares to top the $1-a-share threshold. The following companies now have less than six months to regain compliance.
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Capitol Bancorp(CBC)
Company Profile: Capitol Bancorp is a multibank holding company which, through its subsidiaries, provides a range of banking services, including commercial banking, property and casualty insurance, life insurance, portfolio management and mortgage origination and servicing.
Current Share Price: 53 cents (Jan. 3)
2010 Stock Performance: -76%
Received NYSE Notice: Dec. 1
Management's Expected Action: Capitol Bancorp said that it will notify the NYSE of its intent to cure the price deficiency, as required by the exchange in order to maintain listings of the company's common shares.
"Capitol is currently exploring alternatives for curing the deficiencies and restoring compliance with the continued listing standards," the company said in a statement.
OnStream Media(ONSM)
Company Profile: OnStream Media is an online service provider of live and on-demand Internet video, corporate audio and Web communications and content management applications.
Current Share Price: 80 cents (Jan. 3)
2010 Stock Performance: -52%
Received Nasdaq Notice: Dec. 7
Management's Expected Action: OnStream Media said it has until June 6, 2011, to regain compliance with the Nasdaq's minimum bid price rule.
"Accordingly, relative to the Nasdaq notification, we remain confident that the market will reflect the value we are creating and the progress we have made in executing our growth strategy," OnStream CEO Randy Selman said in a statement. "Furthermore, we believe that if necessary we will be able to meet the Nasdaq criteria to receive a second 180 day compliance period, which would then give us up to a full year to regain compliance."
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Arrowhead Research(ARWR)
Company Profile: Arrowhead Research is a development stage nanotechnology holding company that forms, acquires and operates subsidiaries commercializing innovative nanotechnologies.
Current Share Price: 99 cents (Jan. 3)
2010 Stock Performance: 69%
Received Nasdaq Notice: Dec. 8
Management's Expected Action: Arrowhead said in a regulatory filing that it has until June 6, 2011, to regain compliance with the minimum closing bid price requirement for continued listing. However, the company did not outline any plans to cure the deficiency.
Arrowhead has previously been faced with a possible delisting for non-compliance with the Nasdaq's listing requirements. In March, Arrowhead was granted an additional 180-day grace period to regain compliance with the bid price rule before managing to satisfy the requirement in April.
Atlantic Southern Financial Group(ASFN)
Company Profile: Atlantic Southern Financial is a holding company for Atlantic Southern Bank, which offers banking and financial products and services in central and coastal Georgia.
Current Share Price: 64 cents (Jan. 3)
2010 Stock Performance: -50%
Received Nasdaq Notice: Dec. 10
Management's Expected Action: Atlantic Southern Financial said it has until June 8, 2011, to regain compliance with the Nasdaq's minimum bid price requirement. The company did not offer any specific plans to cure the deficiency.
In addition, Atlantic Southern Financial was previously told that it is not in compliance with a Nasdaq rule that requires a minimum market value of publicly held shares of $5 million.
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Applied Energetics(AERG)
Company Profile: Applied Energetics is involved in the development and manufacture of applied energy systems for military and commercial applications.
Current Share Price: 82 cents (Jan. 3)
2010 Stock Performance: 130%
Received Nasdaq Notice: Dec. 14
Management's Expected Action: Applied Energetics has until June 13, 2011, to regain compliance with the minimum closing bid requirement. The company notes it may be necessary to effect a reverse stock split in order to cure the deficiency.
DJSP Enterprises(DJSP)
Company Profile: DJSP Enterprises provides processing services for the mortgage and real estate industries in Florida.
The business was run by Florida lawyer David Stern, whose foreclosure practices are under investigation in the wake of the "robo-signing" scandal. Although Stern left as CEO and chairman, DJSP Enterprises still faces issues with a subsidiary, DAL Group, which defaulted on a credit line with Bank of America(BAC).
Current Share Price: 55 cents (Jan. 3)
2010 Stock Performance: -93%
Received Nasdaq Notice: Dec. 15
Management's Expected Action: DJSP Enterprises has until June 13, 2011, to regain compliance with the Nasdaq's bid price requirement. The company said it is reviewing its options for regaining compliance with the bid price and for remedying past non-compliances, including Nasdaq rules regarding the market value of publicly held shares and market capitalization.
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Central Federal(CFBK)
Company Profile: Central Federal
Current Share Price: 31 cents (Jan. 3)
2010 Stock Performance: -77.2%
Received Nasdaq Notice: Dec. 17
Management's Expected Action: Central Federal has a 180-day grace period until June 15, 2011, to regain compliance with the minimum closing bid price requirement. The company is "considering a number of different actions that it may take in response to this notice in order to regain compliance with the continued listing requirements, but no decision about a response has been made at this time."
Star Buffet(STRZ)
Company Profile: Star Buffet is a multi-concept restaurant holding company, operates throughout the southeastern and western U.S.
Current Share Price: 63 cents (Jan. 3)
2010 Stock Performance: -81%
Received Nasdaq Notice: Dec. 22
Management's Expected Action: Star Buffet has been provided 180 calendar days, or until June 20, 2011, to regain compliance with the minimum bid price requirement. The company said it will consider available options to regain compliance with the Nasdaq minimum bid price requirement, which may include effecting a reverse stock split.
ahhhh the good life......
