SCO Stock In Danger of Delisting, Again

hweimer writes "In 2005, SCO got into delisting trouble because they failed to file their annual 10-K report in a timely manner. SCO seems to be headed the same way again for a different reason: the stock price is too low to meet Nasdaq's requirements. Quoting: '[W]hat can a company do to boost its share price? Besides stopping to burn money and come up with a working business model, I mean.'"

Comments

Re:Easy fix?

[daeg]

Wrong: Does NASDAQ accept reverse stock splits as a method to regain compliance with the minimum bid price requirement?

Yes. NASDAQ views reverse stock splits as an acceptable method to regain compliance. If the company determines to implement a reverse stock split, it will need to provide certain information to NASDAQ. See the following Frequently Asked Question for additional information. Furthermore, to inform the market of the reverse stock split, NASDAQ will append a fifth character, "D", to the company's symbol for approximately 20 trading days following the reverse stock split.

Re:reverse split?

[KokorHekkus]

NASDAQ also has a minimum regarding the market value of the company and that is set to $5 million which means that they can't continue doing reverse splits ad infinitum. Current market value of SCOX is just shy of $20 million.

Re:Boosting prices

[AKAImBatman]

As amusing as it is, it wouldn't work. The SEC has recently started halting trades on any company mentioned in such spam emails. I don't remember for how long exactly, but the hold is something like a week. Which means that such spam will most likely do more damage than good.

http://it.slashdot.org/article.pl?sid=07/03/09/023 5222

Re:boosting share price

[Anonymous Coward]

I think his issue is that the poster didn't disclose that it was his own content, and even said "Quoting:" which at least implicitly infers that he just happened across the content, not that he'd written it. Disclosure = a fairly good rule of ethics for "journalists" (although the "blogosphere" (gack) is pretty good at being selective about when they want to categorize themselves as journalists).

Re:boosting share price

[theonetruekeebler]

Their market cap is about $20m (at $0.94/share).

Aside from rules compliance, and paying the annual listing fee, NASDAQ has three basic rules about staying listed:

• Minimum share price of $1
• at least 750k public shares
• at least $5m market value.

If they fall out of compliance for 30 straight days (and they last traded for $1 on March 13), they get a delinquency notice and have 90 days to get it together. Their ticker symbol will probably change from "SCOX" to "SCOXE" while they're under threat of delisting. [Source]

SCO already did a 1:4 split back in 2002; I'm not sure how the exchange will feel about them doing it again, because had they not done that split, their share price would currently be less than a quarter.