Boston, MA 05/22/2014 (wallstreetpr) – China Precision Steel, Inc. (NASDAQ:CPSL) will after May 27, 2014, trade on OTC Bulletin Board. The company will trade on OTCBB under the ticker symbol “CPSLQ.” The development follows the eminent delisting of the stock from NASDAQ Stock Market for failure to comply with certain listing rules especially defaulting to pay certain fees as required by NASDAQ.
The company announced that it received a notice letter from NASDAQ over its delisting in connection with the unpaid fees on May 15, 2014. However, it did nothing about it. The stock of China Precision Steel, Inc. (NASDAQ:CPSL) will stop trading on NASDAQ on May 27, 2014. However, the company’s securities will immediately start trading on the junior OTCBB market.
Dropping from a senior stock market to a junior market may not bode well for the company from an investor standpoint. Companies always aspire to climb to the senior capital markets such as New York Stock Exchange and NASDAQ and listing on those markets are always greeted with celebrations from company executives and shareholders.
Listing on senior markets brings greater exposure to the stock and attracts a broader base of investors. However, CPSL decided not to appeal its delisting notice from NASDAQ. Of course, there may be more to it that the management sees than is already in the public domain. As such, investors, can only keep a closer eye on the company for any new developments.
A global business
China Precision Steel, Inc. (NASDAQ:CPSL) is a global player in the niche precision steel industry. The company produces and markets high-precision, cold-rolled steel. The company incorporated in 2002 and has its headquarters in Sheung Wan, Hong Kong. The company sells its products in China and overseas markets such as Thailand, Indonesia, Nigeria and Ethiopia.
3Q2014 financial results
China Precision Steel, Inc. (NASDAQ:CPSL) reported its 3Q2014 results recently during which it announced revenue of $14.2 million, suggesting more than 66 percent improvement over the same quarter in fiscal 2013. The company attributed the big gain in revenue to its aggressive marketing strategies and strong sales in the domestic market. In a quarter-to-quarter basis, revenue grew 20 percent from $11.9 million realized in 2Q2014.
Although China Precision Steel, Inc. (NASDAQ:CPSL) reported significant top-line improvement year-over-year and sequentially, its bottom-line lacked good news. It remains in losses, reporting a gross loss of $5.7 million in 3Q2014 against a gross loss of $2.4 million in 3Q2013.
