Will STR Holdings, Inc. (NYSE:STRI) Recover?
STR Holdings, Inc. (NYSE:STRI“>STRI) (OTCMKTS:STRI“>STRI) crashed 51.89% yesterday, after being de-listed from the NYSE and ending up on the OTC Markets, but judging by today’s green opening, it may not take long before the ticker stabilizes and heads up once more.
Truth be told, STRI“>STRI‘s downfall should have been obvious to anyone who’s done due diligence on the company. The reason given for the de-listing was STRI“>STRI‘s “failure to maintain an average global market capitalization over a consecutive 30 trading-day period of at least $15 million”.
A glance at its latest financial report yields the realization that there is a good reason for the investor’s recent disinterest in STRI“>STRI – the company doesn’t seem to be doing too well.
- Cash and cash equivalents – $10.4 million
- Total current assets – $43.8 million
- Total current liabilities – $9.2 million
- Quarterly net sales – $8.5 million
- Quarterly net loss – $5.9 million
That array of numbers isn’t all that impressive – for the NYSE. However, in the context of the OTC Markets, they take on a whole new outlook. Even though STRI“>STRI is having trouble making ends meet, it is still leagues ahead of most of the dubious penny stocks that make up the majority of the pinksheets section.
So while STRI“>STRI obviously wasn’t welcome on the NYSE anymore, it may find itself right at home on the OTC Markets. The fact that it is a functioning entity will play a big role here, and it wouldn’t really be all that surprising to see the stock recover some serious ground before long, if it manages to avoid making disastrous announcements and filings.
Still, although the company may be in a whole other league, investors are advised to be careful and diligent when dealing with STRI“>STRI stock.
