I need some help !
I have bought a bunch of smallcaps over the years and know anything can happen. But this is a situtation I have NEVER experienced and I dont know what to do.
I had bought & traded with some sucess EDIN over the years.
I had thought they were on the verge of an earnings breakout because I kept seeing insider buying.
Then, things kind of fell apart. They canned the president, brought in the old guy who the president had replaced and they had a bad year. The stock was killed falling about 75% but it is trading at about 1/4 of book value and a fraction of NCA.
The stock was under a buck so I anticipated a reverse or being sent to the OCTBB.
I was shocked when last week they announced that EDIN
" will not pursue its right of appeal to a Nasdaq Listing Qualifications Panel regarding its potential delisting"
I was even more shocked when today..."Educational Insights Files for Non-Reporting Status
CARSON, Calif., March 29 /PRNewswire/ -- Educational Insights, Inc. (Nasdaq: EDIN - news) announced today that it has filed a Certification and Notice of Termination of Registration under Section 12(g) of the Securities and Exchange Act of 1934 on Form 15, seeking to terminate the Company's reporting obligations. As a result of the filing, the Company's obligations to file quarterly, annual, and special reports with the Securities and Exchange Commission (SEC) have been temporarily halted.
Reid Calcott, the Company's President and CEO stated that: ``In view of the Company's pending delisting from Nasdaq, as well as the low trading volume and the limited number of shareholders, the Board unanimously agreed that the benefits of reducing the costs and management's time associated with preparing and filing the forms required of a reporting company far outweigh any drawbacks. Without the obligation of filing these reports, management can focus all of its attention on returning the Company to profitability.''
Unless the Form 15 is rejected by the SEC, the Company's obligations to file any reports with the SEC will permanently cease within 90 days. If the de-registration is successful, the trading and liquidity of the Company's common stock will be significantly diminished as the Company's common stock would no longer be eligible to be traded on the Nasdaq stock market or the OTC Bulletin Board. However, the Company's common stock would be eligible for trading on the pink sheets.
Educational Insights, Inc. designs, develops and markets a variety of educational products, including electronic learning aids, electronic games, activity books, science kits, board games and other materials for use in both schools and homes. The Company's product line, including its most popular product, GeoSafari, appeals to children as well as students ranging from pre-kindergarten to adult and is designed to make learning fun. "
What the HELL is going on ? I have NEVER experienced this and I am no stranger to little stocks.
Are they TRYING to run the price into the ground so they can buy it back cheap or what ?
How can this be consistent with their fiduciary duty ?
What should I do ? (Other than express my concerns to the company and the SEC ?) |
