So NYSE this week eliminated the so-called "sub-penny trading halt" rule, allowing Blockbuster and the rest to return to floor trading.Underachievers get a break!
If either Lee or McClatchy, the two companies flirting with penny stock levels, falls below the $1.05 mark, they can continue to trade everywhere while trying to push the price up.
This doesn't eliminate the threat of delisting for companies that cannot keep their share price above a buck, however. NYSE Euronext spokesman Ray Pellecchia tells E&P that eliminating the sub-penny trading halt was a technical rule change -- listing compliance regulations are still in full effect. Companies with share prices that close below an average $1.05 over a 30-day trading, or whose market cap falls below $75 million, will be ordered by NYSE Regulation Inc. to put together a plan to get the price up consistently within six months.
In reality, it doesn't take that long. Journal Register Co., Sun-Times Media Group, and GateHouse Media Inc. all left the Big Board within a couple of months of their compliance warnings.
Thursday, November 20, 2008
Could McClatchy get kicked off the New York Stock Exchange?... a new rule makes it easier for McClatchy to stay
Several commenters here have noted McClatchy is in danger of getting kicked off the New York Stock Exchange due to its share price approaching $1.05 a share. But a new rule makes it easier for McClatchy to stay with the NYSE -- even if its share price falls under the $1.05.