What did you think was going to happen when R&D was outsourced to Sanjay? Tech-power-house = outsourced garbage. You're fooling no one anymore!
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@b9 I thought it was 30 consecutive days under a dollar means you get delisted - not 90- but I could be wrong?
Hesitate to renew? They already flat out tell us they don't want to renew and can't wait for their contracts to be up. The stock news will not make it any worse, as the lack of supplies being shipped and the automatic supply replenishment never working, countless billing issues, and undelivered product is already what did them in.
Over the last month it dropped 27%, another 27% and the stock will be under $1 which is the NASDAQ requirement. 90 days below the threshold of $1 and the stock gets delisted.
That will result in all shareholder value being wiped. But it’s only institutional investors that are forced to own the stock via the ETFs they provide and the shortsellers left. In other words, no one will be overly sad. Being delisted also means we won’t be able to borrow money easily, which again we have nowhere to go for money anyways.
The negatives will be clients learning about the news as a 100 plus year company being delisted will make mainstream news. They will be hesitant to renew and revenue will continue to decline.
Declining revenue is an issue due to the covenant clause in the IPCo bankruptcy venture that now owns all the IPO, as they will now be forced to declare us bankrupt. The covenant clause basically states that if brand line revenue (mainly print) does not hit the threshold of roughly last years revenue they will be forced by their lenders to declare insolvency and sell off anything (IPO, ITS, etc.) they can to recoup what little is left.
Conclusion: Chapter 11 - Thousands of layoffs - Potentially a new org under new and smaller leadership.
Don't be a racist
A daily low of $1.34 ... currently sits at $1.40