8K on Monday - Notification from NASDAQ - Regained compliance!
On Jan 6, 2014, the Company announced that on Jan 3, 2014 it received notification from the NASDAQ Stock Market indicating that the Company has regained compliance with NASDAQ Rule 5550(a)(2) in that the Company’s closing bid price has been at $1.00 per share or greater for at least 10 consecutive business days. The notification stated that the matter of the deficiency, which arose as of Dec 9, 2011, is now closed and the Company’s stock will continue to be listed and trade on The Nasdaq Capital Market.
I doubt that news moves the stock everyone knows they are in compliance now and they could ask for another 6 months but will not need to now. I think the story is the fact they have now past break even and things like IM will just add to sales and margines on 100^ growth. I would look for more deal to distribute the high margins stuff like IM,
I would add though it seems very weird this stock is still trading around book given the fact they have past break even and are growing around 100% and have had the big IM deal. I think this is gona change very soon though and it should be 3-5 bucks soon.
Are you sure? It seems that once the second 6-month grace period has ended--and it has--the decision of whether to delist is made at the hearing referred to in the last 8-K. The 10 consecutive day thing alone no longer means anything. Now practically, with the stock trading over $1 I think Infosonics is going to avoid delisting. But it doesn't happen automatically. And for clarity the stock wouldn't be delisted in any case. It's that the company would be forced to do an rs.
Brian, Friend, I hope we are just talking technicalities and therefore the discussion is outdated now. IFON would do an r/s to avoid delisting anyway, as you aptly point out. However, even in the last 8k, one can note that the company mentioned the r/s, "if necessary." What would convince the NASD that it's not necessary? IMO, it would be:
1) either a rationale for why the stock price will soon trade above a buck
2) some evidence that it "is already" in process of trading above a buck, a level that is believed "sustainable"
Otherwise, the comment about "if necessary" is without meaning. The phrase clearly indicates that even though the date for compliance has come and gone, the NASD is willing to consider circumstances where delisting is not necessary. Also, I don't believe the exchange "wants" to delist stocks.
IFON approached NASD, we were informed in the filing, on Dec. 26. The stock was already trading over a buck for several days. It closed at 1.81 on that very day. The IM agreement had been struck just days before and would be pretty obvious to a NASD panel in terms of potential significance to IFON's future.
In my view, IFON had plenty of ammo to approach NASD with......so, I think the delisting discussion is a moot issue now. I also think that the 10 days of consecutively trading above a buck is the icing on the proverbial cake, if NASD needed the "i"s dotted and "t"s crossed before it decided on IFON's plan for regaining compliance. It rather makes it an easy call for NASD.
I think this thing is going to pop so fast....when it happens....it will make your head swim. IMO. The rubber band is being pulled back for maximum effect. The daily volume since the massive run-up day recently shows a lot of people took profits...I'm guessing this was coupled with some shorting as well. In other words, it shows an effective consolidation of the big one-day gain impact. Again, I rather hope shorts try to hold the line because fundamentals strongly favor the long position here. We'll see and I don't believe it will take many days. IMO.
....a final thought, today. The next time we visit 1.60 a share, I believe we will kiss the 1.40s goodbye for a long time. Once we go through 1.68, the bull will be running again. Obviously, I'm pretty excited about IFON and I hope for substantive reasons. IMO.