Boston, MA 10/16/2013 (wallstreetpr) – The long and short of it is that NewLead Holdings Ltd (NASDAQ:NEWL) is leaving on borrowed time at the NASDAQ stocks exchange market. The company’s shares have now entered lower-penny trading, going around $0.0887 per share. And its market cap has dropped to $35.74 million as of today Wednesday, October 16.
It now means that the company is ripe for delisting from NASDAQ. In fact, it had met the delisting threshold very long-ago, only that the NASDAQ staff has been good for it, perhaps hoping that its woes would soon go away.
NEWL’s woes get compounded by each passing day. The operations of this shipping company are almost coming to a standstill. Its ships are now being confiscated over subserviced debts. This means that NEWL is facing acute cash flow problem which has denying any opportunity to regain ground.
As NEWL sinks into deep underwater with its own vessel, investors, even those who had shown thickness, are now quitting. And as they quit, the shares are taking serious nosedive.
The shipping industry, particularly bulk shipping, has been ailing for several years and NEWL is just joining the growing list of casualties in this slow economy. Other players like DryShips have been able to find a lifeline with rebound in tanker and drybulk shipping. But many have not been very lucky.
To remain in the NASDAQ stock market, NEWL has to keep its share’s bid at above $1 per share. If not, delisting is evitable. However, the company has a reprieve if it presents before the NASDAQ hearing panel a feasible rebound plan. With such a plan, it can buy some more time to put is house, and indeed business in order. But with creditors already confiscating ships, getting order is a tall call for this Greece-based shipping company.
NEWL is dropping so fast that over the past six months, it has seen its market cap go down by approximately 78%; a very bad position for a holding company of its stature.
