This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nazz Delist Threats Hollow

Laxity and Leeway

The Nasdaq, which makes much of its money from listing and transaction fees, does not want to delist companies, contends Oesterle. Nor does it want companies to move to a competing bourse, such as the London Stock Exchange. He says the Nasdaq seems to be carrying companies that are grappling with backdating issues longer than it normally would for late filers.

"If, for example, you were accused of not filing your reports because of some sort of Ponzi scheme, I don't think they would give you much leeway," Oesterle says.

That's not to say the Nasdaq has not delisted companies for missing filing deadlines. Vitesse Semiconductor and Mercury Interactive are among the delinquent filers that have gotten the boot.

And if the Nasdaq is too lax, the SEC has the power to step in. A spokesman for the SEC said he could not comment on the commission's attitude or its response to the Nasdaq's delisting practices for backdaters.

But he said that the SEC has oversight over the Nasdaq and other exchanges and that part of the oversight involves examining how the exchanges are enforcing their rules.

The next couple of months should be telling.

One person involved in the delisting process estimates that as many as eight companies are facing June deadlines and says that another batch of companies will see the clock run out in July.

Chipmaker Integrated Silicon Solutions (ISSI) filed the last of its missing financials on Tuesday -- Nasdaq's deadline -- restating $32.1 million in additional stock-based compensation between 1997 and 2006 and escaping delisting in the nick of time.

Atmel, another semiconductor company, said last week that it was on track to file its results by "early June," although the company did not specifically say by June 8, which is the deadline it is running up against.

As more companies near their deadlines, the Nasdaq may find itself forced to make a difficult choice of flexing its muscle or exposing its penalties as empty threats.

5 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs