7 names that risk joining the shameful ranks of stocks removed from the rating
Some investors just can’t help themselves. They like companies with low stock prices. However, these stocks carry an array of risks, including an increased likelihood that when the $ 5 and $ 1 marks are breached, those names may join the ranks of the delisted stocks. To clarify, companies vulnerable to becoming delisted stocks are currently trading on a major exchange, like the Nasdaq or the New York Stock Exchange, and when they become delisted stocks, that does not mean an act of disappearance. After being banned from traditional stock exchanges, the delisted stocks can be traded over-the-counter or on pink sheets. Companies that fear losing their listing privileges on a major stock exchange have means at their disposal to avoid this worrying result. The best way to stay on the Nasdaq or the NYSE is to simply provide good, credible fundamental news that leads to a higher share price, but many companies at risk of delisting are fundamentally flawed. InvestorPlace – Stock Market News, Stock Advice & Trading Advice This leads to the second and most popular avenue. This is the old reverse division – a strategy that often works in favor of eager short sellers and rarely in favor of the company looking to avoid delisting. Rating 10 of the hottest PSPCs of 2020 in preparation for the New Year is something to chew on, especially with just over 100 US-listed companies that may soon be among the delisted stocks, including seven: Sundial Growers (NASDAQ: SNDL) XpresSpa Group (NASDAQ: XSPA) Uxin Limited (NASDAQ: UXIN) Globalstar (NYSEAmerican: GSAT) Luokong Technology (NASDAQ: LKCO) Ur-Energy (NYSEAmerican: URG) Hexo (NYSE: HEXO) Stocks Removed Danger: Sundial Growers (SNDL) Source: Shutterstock Cannabis grower Sundial Growers closed at 48.5 cents on December 30, meaning that even if the stock doubles before the end of the year, it would still not respond not with the above Nasdaq registration requirement of $ 1. SNDL stock has not traded above $ 1 since June. At a time when many cannabis stocks are rallying and Sundial is collapsing, it’s hard to get excited about this name, which is clearly lagging behind. This is a clear warning sign, as is the price of 48 cents. It’s a stretch to say that there is a lot of good news associated with the sundial at this point, but if there is any, it is not an imminent danger of becoming a de-listed stock. side. Nasdaq recently granted the company an extension until June 26, 2021 for its share price to exceed $ 1. That’s enough time to reach a relatively low benchmark. At the same time, there is no guarantee that the sundial will not join the ranks of those removed from the list next year. XpresSpa Group (XSPA) Source: Africa Studio / Shutterstock The XpresSpa Group is down 33.32% since the start of the year, an understandable drop for a company where the main pre-pandemic business model was operating massage centers and of well-being in airport terminals. However, what is really telling is that XSPA’s stock is down almost 85% from its June highs despite the company’s admirable efforts to turn its airport locations into Covid-19 test centers. . Before the pandemic, XpresSpa was bleeding money, so even if the airline industry returns to normal tomorrow, which won’t happen, that doesn’t necessarily mean that XSPA stock is poised for a significant hike. The 7 safest actions to start 2021 on the right foot To be clear and fair to XpresSpa, the Nasdaq has not yet warned the company of a possible delisting event. Although the stock spent some time below $ 1 earlier this year, it has been trading below that level since April. Following an 18.18% drop for the month ending December 24, XPSA stock closed at $ 1.35 on that day, so it could be some time before it drops into below $ 1 and even more before the Nasdaq services notify a possible delisting. Uxin Limited (UXIN) Source: Shutterstock If you’re not familiar with Uxin Limited, you are not alone. It’s a Chinese e-commerce company, but one that no one will confuse with Alibaba (NYSE: BABA). Uxin is a car buying platform, but keep those Carvana (NYSE: CVNA) comparisons at the door. It would be reasonable to think that the combination of the huge Chinese auto market and internet action would mean big things for Uxin. Alas, this is not the case as stocks have lost two-thirds of their value from the 52 week high and it has been six months since UXIN stock traded around $ 2. It closed at 96 cents on December 24 and while Uxin hasn’t spent much time below $ 1 this year, nor has it been warned of the write-off, the combination of a lower share price and controversy over certain Chinese stocks listed in the US could weigh on Uxin at some point next year. Globalstar (GSAT) With a market capitalization of $ 641 million, communications equipment maker Globalstar is one of the biggest names on this list, and it has features that may attract unwitting investors. For example, Globalstar has exposure to 5G and the stock is up and it’s up almost 21% in the last month. Yet GSAT stock is speculative at best. Despite all the 5G fervor, it’s been almost three years since the name traded above $ 1. Globalstar has a relationship with Fiat Chrysler and its Jeep brand, but even with that it lost money in the third quarter. Rating of 10 Hottest PSPCs of 2020 in Preparation for the New Year The exchange did not recently say that GSAT shares were at risk of delisting, but this is an issue the company has had problems in the past when she traded on the Nasdaq. Luokong Technology (LKCO) Source: apichon_tee / ShutterStock.com Luokong Technology is another Chinese stock that perhaps should be more attractive than its 75-cent price suggests. Its Luokuang mobile app offers information, entertainment, travel, e-commerce and other internet content services. There are big data and cloud computing angles here too, so it’s no surprise that a penny stock with these characteristics can, on occasion, pack a punch like Luokong did last week when he won almost 45%. As for the delisting, the Nasdaq already notified the company earlier this year. Luokong had until October to exceed $ 1 and was able to get an extension on that because equity was north of $ 5 million. None of this is an invitation to buy a name that is also speculative. Not when there are higher quality Chinese tech stocks to consider. Ur-Energy (URG) Source: Shutterstock Among the stocks mentioned here, uranium miner Ur-Energy has one of the longest stretches under $ 1 – it hasn’t exceeded that level for almost six years – and he also has some of the best prospects in the short term. This is clear from a gain of 61.67% over the past month. Adding to the argument of this delisted flirtatious stock is that this rally is supported by some credible fundamentals. The recently passed Energy and Water Development Credits and Related Agencies Act of 2021 paves the way for the Department of Energy (DOE) to support domestic uranium production, including a national uranium reserve. The 7 safest stocks to get 2021 off to a good start “Given the administration’s stated priority to preserve existing US nuclear infrastructure assets, we believe government funding for uranium purchases will be directed to established generation companies with licensed physical infrastructure and proven generation operations, ”According to Ur-Energy. Uranium has a role in the clean energy conversation, which supports the short-term rise in URG stock. It’s not the most conservative of ideas and Ur-Energy may be written off in the future, but its outlook is remarkably optimistic compared to some of the other stocks on this list. Hexo (HEXO) Source: Shutterstock Another cannabis name, Hexo is the more expensive name of that name, residing at just over $ 4 at the December 24 close. That said, delisting isn’t imminent, but like the sundial, Hexo is a brawl name in a booming industry. The reason HEXO stock isn’t in short-term danger of being delisted is because it previously announced a reverse split, but since then the stock has jumped, allowing the company to reduce that. which was supposed to be a 1 to 8 to a split ratio of 1 to 4. Hexo’s positioning in the cannabis infused beverage market gives it something to stand on and there is revenue growth to speak of , but any misstep could embolden short sellers when HEXO stock suffers a reverse split. For now, Hexo is out of the radiation woods, but for how long that stays true remains to be seen. As of the publication date, Todd Shriber does not have (directly or indirectly) a position on any of the titles mentioned in this article. Todd Shriber has been an InvestorPlace contributor since 2014. Learn more about InvestorPlace Why Everybody’s Investing in 5G Every Bad Stock Picker Reveals Their Next 1000% Winner Radical New Battery Could Dismantle Oil Markets The 7 Names Of post may join the shameful ranks of the radicals The stocks appeared first on InvestorPlace.