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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

19 Stocks Slapped With Delisting Warnings

Updated from Feb. 8 with eDiets.com delisting notice.

BOSTON (TheStreet) -- U.S. stocks started off the year with a winning January, as the S&P 500, Nasdaq and Dow Jones Industrial Average posted gains of as much as 2.7%, or more than 30% on an annualized basis, twice last year's increase.

Small-cap stocks fared even better, with the Russell 2000 Index rising more than 3%, as an acceleration in global economic growth attracted investors to companies that can produce outsized profits. Lost amid the euphoria is the fact that small companies pose risks rarely present at larger peers. In fact, 19 stocks trading on the technology-heavy Nasdaq this year have been alerted of deficiencies that could force a delisting.

Those deficiencies range from violations of the minimum bid-price rule, as share prices of some penny stocks have languished below $1, to violations of audit-committee requirements, market value, proxy solicitation or even public interest.

Companies faced with a delisting typically see a detrimental effect on share prices. For instance, the New York Stock Exchange in January delisted the stock of Capitol Bancorp. The company's shares traded for $3 a year ago, but now can be bought for 25 cents on the Pink Sheets.

Still, because companies on exchanges' watch lists record higher-than-average volatility, risk-friendly investors have the chance to make lots of money, either by shorting the stocks on expectations shares will fall, or going long on the hopes they will live to fight another day. Fifteen companies listed on the Nasdaq received delisting warnings in December, and those stocks fell by an average 10% over the past three months. Community Central Bank (CCBD) was the biggest loser, down 53%, while Star Buffet (STRZ) rallied more than 70% during the same period.

Nevertheless, all 19 companies were notified in January that they're in violation of listing requirements and could be delisted from the Nasdaq. The following companies now have a limited window of time to regain compliance with the exchange's listing rules.






Educational Development (EDUC)

Company Profile: Educational Development is a publisher of a line of children's books in the U.S.

Current Share Price: $6.80 (Feb. 7)

Listing Violation: Audit committee composition. The listing rule requires that a majority of the board of directors must be comprised of independent directors and that the company's audit committee have at least three members, all of whom must be independent.

Received Nasdaq Notice: Jan. 3

Management's Expected Action: Educational Development has until its next annual meeting to regain compliance with the listing requirement. "The board is currently considering candidates and intends to appoint an independent director to fill the vacancy on the board and the audit committee as soon as possible," the company said in a regulatory filing. The company said it expects that to occur before the next annual meeting.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Stock quotes in this article: HAUP, OCNF, FUQI, VITC, CTEK, SHIP, CSCD 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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