With few IPOs to count on, it’s not time for the NASDAQ to get picky about listing standards, at least if it doesn’t want to shrink too dramatically. The San Francisco Chronicle notes that the exchange has instituted a three-month extension to a no-delisting plan, first instituted last October:
“Market conditions have not improved since the suspension began and, in fact, both the number of securities trading below $1 and the number of securities trading between $1 and $2 on Nasdaq has increased,” Nasdaq management said in the SEC filing Dec. 18. The depressed prices stemmed from a general decline in investor confidence rather than the underlying prospects for many of these companies, the exchange said.
In a Nasdaq report Thursday, more than 250 companies were named as non-compliant with listing requirements. For half of those, low share prices were cited as the problem. But other companies not named in the report are also trading below $1.
There are another 300 companies trading at $1-$2, which means that of the approximately 3,000 NASDAQ-listed companies, nearly 20% are in the danger zone or worse.
(via Jeff Nolan)