BENSALEM, Penn. (
( OHB), the $38 million market cap homebuilder -- whose third-quarter earnings are weeks overdue -- announced after the market close on Monday that is had received a written notice from the NYSE Amex stating that the Company is not in compliance with the Exchange's continued listing criteria.
Orleans failed to timely file its quarterly Form 10-Q for the period ended September 30, 2009. The NYSE written notice stated that the failure to file the Form 10-Q constitutes a material violation of the listing agreement with the NYSE and authorizes the Exchange to suspend and, unless prompt corrective action is taken, remove the Company's common stock from the exchange.
The continuing saga with beleaguered Orleans was just the grimmest reminder of the woes of the homebuilding sector, and Monday was a particularly, though typically, down day for the sector. Almost every one of the major homebuilders was down on Monday, led by losses at
. Lennar was down 3.5% on Monday, while KB Home was down 3%.
managed gains of 0.8% and 1.2% respectively.
The brightest recent story in the homebuilding sector -- and biggest gainer on Monday -- was
( BHS). Brookfield was up 2.5% Monday on slightly higher than average volume,
picking up right where it left off last Friday when it was the sector's biggest gainer.
Over the past week the Brookfield shares have gained approximately $1, though it's been an up and down story for Brookfield, as with all homebuilders. It is still more than $2 off a three-month high of $8.33 reached in September. Its 52-week high is $8.46
The Orleans SEC filing saga has a longer history than the most recent quarter's earnings. In connection with the Orleans' failure to file its Form 10-K for the fiscal year ended June 30, 2009, Orleans had previously submitted a plan of compliance to the NYSE on November 16, stating it would be in compliance by Feb. 2, 2010. This plan of compliance also addressed the Company's failure to file the Form 10-Q.
In today's after-market release, Orleans said it may submit a revised plan of compliance with the exchange on or before Dec. 15. Orleans says that it did not timely file its Form 10-K and Form 10-Q, as this would have required unreasonable effort and expense. While Orleans currently expects to file the Form 10-K and Form 10-Q in early 2010, it noted in its after-market release that it can offer no assurance that it will file its Form 10-K or Form 10-Q at or before the times provided above.
-- Reported by Eric Rosenbaum in New York.
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