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!

16 Small-Cap Stocks in Danger of Delisting

BOSTON (TheStreet) -- Small-cap stocks, measured by the Russell 2000 Index, were little changed in March, beating the broader market during a time of crisis in Japan and the Middle East.

Still, many carry risks rarely present at larger peers, including the inability to remain compliant with listing standards of the Nasdaq, spurring delisting warnings from the exchange.

Overall, March was a losing month for most equities, with the S&P 500 and Nasdaq Composite each down more than 1%. Cisco Systems (CSCO), a constituent of the S&P 500, dropped 7% this month alone. Investors, though, bid up small-cap stocks, which is odd considering this class of stocks usually gets punished when the market is weak.

But some smaller companies, which typically expose investors to greater volatility, suffer from deficiencies ranging from violations of the minimum bid-price rule, as share prices of some penny stocks have languished below $1, to violations of board independence, delinquency and market value.

Companies faced with a delisting often meet their fate with large losses. Fuqi International (FUQI.PK), a Chinese jewelry company, landed on the Nasdaq's list of non-compliant companies back in April 2010 due to delinquency in filing its annual report. Fuqi, which has faced accounting errors like other Chinese companies, was delinquent in filing other quarterly reports and also failed to hold its annual shareholder meeting. The stock is down more than 50% this year and traded on the Pink Sheets as of Tuesday.

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. Companies like eDiets.com (DIET) and Star Buffet (STRZ), both slapped with delisting warnings, are up 73% and down 21%, respectively, over the past two months.

Nevertheless, the following 16 companies were notified in March that they're in violation of listing requirements and could be kicked off the Nasdaq. The companies now have a limited window of time to regain compliance with the exchange's listing rules.






StemCells (STEM)

Company Profile: StemCells researches, develops and commercializes stem cell therapeutics. Its research and development programs are focused on its cellular medicine programs, where it identifies and develops cell-based therapeutics.

Current Share Price: 86 cents (March 29)

Listing Violation: Bid price. The listing rule requires that a company maintains a minimum closing bid price of $1 per share for its common stock. StemCells shares last closed above $1 on Jan. 18.

Received Nasdaq Notice: March 3

Management's Expected Action: StemCells said in a regulatory filing that the company will continue to monitor the closing bid price for its common stock and consider its available options to regain compliance with the Nasdaq minimum bid price requirement, which may include applying for an extension of the compliance period or an appeal to a Nasdaq Listing Qualifications Panel. The company has until Aug. 30 to regain compliance with the rule.

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

Get Adobe Flash player

1 of 9

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.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • 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