14 Penny Stocks Get Delisting Warning

BOSTON (TheStreet) -- U.S. stocks recorded their worst August performance in nine years, hurt by concern over a sagging economy. The Nasdaq bore the brunt of the decline, with a 6.2% slide, pushing 14 member companies closer to being booted from the stock exchange. All were notified in August that they are in violation of a rule that requires their shares to trade above $1. The companies now have less than six months to regain compliance.

Cascade Financial ( CASB) last closed higher than $1 on June 18, days before shareholders at the annual meeting approved a proposal to increase authorized common stock to 65 million shares from 25 million. There are 12.3 million shares of Cascade Financial shares outstanding as of the end of the second quarter.

Company Profile: Cascade Financial is the bank holding company of Cascade Bank, which offers a range of commercial banking services. Based in Everett, Wash., Cascade employs 220 people.

Closing Price: 31 cents (Sept. 1)

Three-Month Stock Performance: -77.2%

Received Nasdaq Notice: Aug. 3

Management's Expected Action: Cascade Financial has until Jan. 31 to regain compliance with the minimum closing bid price requirement. On Aug. 6, Cascade said it "intends to actively monitor the bid price" for its common stock and "will consider available options to regain compliance with the Nasdaq minimum bid price requirement."

Conolog ( CNLG) rallied to a 52-week high of $4.72 in February before plunging below $1. The stock last closed above $1 on June 30.

Company Profile: Conolog provides digital signal processing and digital security services to electric utilities. Based in Somerville, N.J., Conolog has only 16 workers. In February, TheStreet noted many of the pitfalls associated with investing in penny stocks by highlighting Conolog. The Benou family, which controls Conolog, sold shares after the stock nearly doubled in price on the announcement of a $1.9 million systems contract.

Closing Price: 53 cents (Sept. 1)

Three-Month Stock Performance: -58.6%

Received Nasdaq Notice: Aug. 13

Management's Expected Action: Conolog said in a regulatory filing that it has until Feb. 9 to regain compliance, although the company did not provide any further plans. Conolog lands on the Nasdaq's non-compliance list for a number of other reasons, including deficiencies in proxy solicitation and its annual shareholder meeting requirement. In June, Conolog received separate notifications from the Nasdaq for deficiencies in stockholders' equity required for continued listing, as well as failure to have its 10-Q for the quarter ended April 30 to be reviewed.

Delta Petroleum ( DPTR) shares last closed at $1 on June 23. They've been below that ever since.

Company Profile: Delta Petroleum mainly engages in acquiring, exploring, developing and producing oil and gas properties. The company is based in Denver and has 79 employees.

Closing Price: 72 cents (Sept. 1)

Three-Month Stock Performance: -35.7%

Received Nasdaq Notice: Aug. 9

Management's Expected Action: In a regulatory filing, Delta Petroleum said it has until Feb. 7 to regain compliance with the minimum bid price requirement. Delta said it will monitor the bid price for its common stock and "will consider available options to resolve the deficiency and regain compliance with the Nasdaq minimum bid price requirement."

Income Statement: Delta Petroleum's stock has fallen to 52-week lows after Delta in early August said it recorded a second-quarter net loss of 54 cents a share, which included a $96.1 million impairment charge.

FNB United ( FNBN) shares haven't closed above $1 since June 18.

Company Profile: Through its subsidiaries, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, investment management and trust services, to individual and business customers. The company is based in Asheboro, N.C., and has more than 500 employees.

Closing Price: 60 cents (Sept. 1)

Three-Month Stock Performance: -48.3%

Received Nasdaq Notice: Aug. 2

Management's Expected Action: FNB United has until Jan. 31 to regain compliance with the bid price rule. While the company did not offer specific plans it will employ to regain compliance, FNB United noted it would be eligible after Jan. 31 to see an additional grace period by transferring to the Nasdaq Capital Market.

Income Statement: In late July, FNB United said its second-quarter net loss swelled to $25.7 million, or 25 cents a share, compared to a year-earlier net loss of $1.2 million, or 11 cents a share.

GameTech International ( GMTC) shares last closed above $1 on June 21. Trading volume increased in the first few days of August shortly after the company named Bill Fasig chief executive officer, replacing Floyd "Bud" Glisson.

Company Profile: GameTech designs, develops and markets electronic bingo systems consisting of portable and fixed-based systems, and manufactures and sells video lottery terminals. GameTech is based in Reno, Nev., and has 190 employees.

Closing Price: 37.4 cents (Sept. 1)

Three-Month Stock Performance: -76.7%

Received Nasdaq Notice: Aug. 3

Management's Expected Action: GameTech said in a regulatory filing that is has until Jan. 31 to regain compliance with the minimum bid price requirement, adding it will "consider available options to resolve the minimum bid price deficiency. However, there can be no assurance that the company will be able to regain or maintain compliance with the minimum bid price rule or other listing criteria or that an appeal, if taken, would be successful."

Genetic Technologies ( GENE) is a thinly traded stock that hasn't closed above $1 since July 9. The stock has an average daily share volume over the past three months of less than 2,000.

Company Profile: Genetic Technologies is a biotechnology company focused on expanding its genetic testing and reproductive service businesses in Asia. Based in Australia, the company counts 65 people in its workforce.

Closing Price: 85 cents (Sept. 1)

Three-Month Stock Performance: -24.6%

Received Nasdaq Notice: Aug. 19

Management's Expected Action: Genetic Technologies has until Feb. 15 to regain compliance with the Nasdaq's bid price requirement. The company said it "fully expects to regain compliance within the cure period," although it did not offer any specific plans.

Jacada ( JCDA) has closed below the $1 mark every trading session since July 28, prompting the warning from the Nasdaq.

Company Profile: Jacada develops, markets and supports unified service desktop and process optimization solutions that simplify and automate customer service processes. Based in Israel, Jacada employs more than 130 people.

Closing Price: 87 cents (Sept. 1)

Three-Month Stock Performance: -26.3%

Received Nasdaq Notice: Aug. 11

Management's Expected Action: Jacada said in a regulatory filing it has until Feb. 7 to regain compliance. The company said it is "examining several potential courses of action aimed at supporting the company in regaining compliance with the requirements for continued listing."

Income Statement: Jacada received the Nasdaq's warning letter on the same day it reported second-quarter financial results. The company posted a net loss of $1.7 million, or 10 cents a share, narrowing from a year-earlier net loss of $3.4 million, or 21 cents a share.

ParkerVision ( PRKR) shares last closed above $1 on July 26, although before that it last finished above the $1 mark on July 6.

Company Profile: ParkerVision designs, develops and sells proprietary radio frequency technologies and products used in wireless communications products. The Jacksonville, Fla., company has 51 employees.

Closing Price: 68 cents (Sept. 1)

Three-Month Stock Performance: -60%

Received Nasdaq Notice: Aug. 18

Management's Expected Action: ParkerVision has until Feb. 14, 2011, to regain compliance with the minimum bid price requirement. The company said it "intends to actively monitor the bid price" and "will consider all available options to regain compliance with the Nasdaq minimum bid price requirement."

StemCells ( STEM) shares have failed to close above $1 since June 28, although the stock has seen a recent spike in trading volume after a U.S. District Court injunction that stops an expansion of federal funding for research involving stem cells. The court ruled that research involving stem cells derived from embryos violates a 1996 law that prohibits research where embryos would be destroyed.

Company Profile: StemCells is engaged in the research, development, and commercialization of stem cell therapeutics. The company is based in Palo Alto, Calif., and employees 75 people.

Closing Price: 79.5 cents (Sept. 1)

Three-Month Stock Performance: -22.1%

Received Nasdaq Notice: Aug. 18

Management's Expected Action: StemCells said in a regulatory filing it has been given until Feb. 8 to regain compliance with the Nasdaq's bid price requirement. StemCells said it "will continue to monitor the closing bid price for its common stock and consider its available options to regain compliance," which it says may include applying for an extension of the compliance period or an appeal to a Nasdaq Listing Qualifications Panel.

TOP Ships ( TOPS) shares last finished above $1 on July 28.

Company Profile: TOP Ships is an international seaborne transportation services provider, carrying petroleum products, crude oil for the oil industry and drybulk commodities for the steel, electric utility, construction and agriculture food industries. Based in Greece, TOP Ships has nearly 60 employees.

Closing Price: 70 cents (Sept. 1)

Three-Month Stock Performance: -39.1%

Received Nasdaq Notice: Aug. 12

Management's Expected Action: TOP Ships said it has until Feb. 8 to regain compliance with the bid price listing requirement. The company said it "is considering its options in order to regain compliance," although did not specify what those options were.

Income Statement: A week prior to receiving the Nasdaq warning letter, TOP Ships reported a second-quarter net loss of $1.8 million, or 6 cents a share, narrowing from a year-earlier loss of $15.9 million, or 58 cents a share.

United Western Bancorp ( UWBK) last finished above $1 on June 21, and the stock has fallen to a 52-week low in the past several trading sessions.

Company Profile: United Western is a unitary thrift holding company for United Western Bank, which provides financial services. The company is based in Denver and has more than 200 employees.

Closing Price: 39.6 cents (Sept. 1)

Three-Month Stock Performance: -64.1%

Received Nasdaq Notice: Aug. 5

Management's Expected Action: United Western Bancorp said it has until Feb. 1 to satisfy the Nasdaq's minimum bid price requirement. The company said it will "consider implementing available options to regain compliance."

Urologix ( ULGX) shares struggled to finish above $1 through most of July and August, last finishing above the mark on July 19.

Company Profile: Minneapolis-based Urologix develops, manufactures, and markets a non-surgical, catheter-based therapy which uses microwave technology for the treatment of benign prostatic hyperplasia. The company has 90 employees.

Closing Price: 95 cents (Sept. 1)

Three-Month Stock Performance: -30.2%

Received Nasdaq Notice: Aug. 19

Management's Expected Action: Urologix said in a regulatory filing that it has until Feb. 15 to regain compliance with the minimum bid price requirement for continued listing. Previously, the company was cited for having a deficiency in its audit committee composition as of July 8, although the company said it has sorted its noncompliance.

Income Statement: The disclosure of the Nasdaq warning letter came a day after Urologix said fiscal fourth-quarter revenue was down on a year-over-year and consecutive-quarter basis to $3.6 million, which the company attributed to uncertainty over Medicare reimbursements and temporary backorders.

Voxware ( VOXW) is a thinly traded stock that last closed above $1 on June 17. Over the past three months, Voxware has had a miniscule average daily share volume of 618.

Company Profile: Voxware is a provider of software for voice recognition services that direct the work of the warehouse workforce. Voxware is based in Hamilton, N.J., and has 64 employees.

Closing Price: 75 cents (Sept. 1)

Three-Month Stock Performance: -40.5%

Received Nasdaq Notice: Aug. 2

Management's Expected Action: Voxware said it has a 180-day grace period that will end Jan. 31 but did not provide a list of options it is weighing. Voxware is also deficient based on the Nasdaq's requirements for market value, equity and net income as of May 24, although the company said it has provided its specific plan to achieve and sustain compliance to the Nasdaq for review.

WebMediaBrands ( WEBM) hasn't closed above $1 since June 21.

Company Profile: WebMediaBrands operates three distinct online networks: Mediabistro.com, Internet.com and Graphics.com. Based in Norwalk, Conn., WebMediaBrands has 60 employees on its payroll.

Closing Price: 68 cents (Sept. 1)

Three-Month Stock Performance: 29.9%

Received Nasdaq Notice: Aug. 6

Management's Expected Action: WebMediaBrands said it has until Feb. 2 to regain compliance with the listing requirement, noting that it may be eligible for an additional 180-day grace period if it meets the initial listing standards, with the exception of bid price, for the Nasdaq Capital Market.

Income Statement: Shortly after disclosing the receipt of the Nasdaq's warning letter, WebMediaBrands said second-quarter revenue jumped 72% from a year earlier to $2.45 million, although the company still had a net loss of 3 cents a share.

-- Written by Robert Holmes in Boston.

>To contact the writer of this article, click here: Robert Holmes.

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