Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The Panda Project (PNDA) -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (745)	1/17/1998 9:08:00 AM
From: Brad Davies	Respond to of 1521

Drakes, thanks for the further information on listing requirements. What I take from the 10Q (which you may presume was prepared by a lawyer), is that NASDAQ will not stricly enforce its own guidelines and delist non compliant stocks. Rather, they will give them as much time as they ask for to make themselves compliant. Remember, NASDAQ is not a government agency. Their concern is for their members... The dealers. They could care less about investors, and one should never trade on the expectation that they will ever do anything to harm their dealers to protect investors. I am surprised that their listing requirements include a minimum bid price. Are they saying an operating company should manipulate its share price in order to maintain a listing? Say it aint so.. Regards, Ron

To: drakes353 who wrote (745)	1/19/1998 3:50:00 AM
From: Q.	Read Replies (1) \| Respond to of 1521

Thanks, Drake, for the clarifications. I was mixing up two different elements of the two plans to stay listed. It is now clear that if the stock price is below $5, then they must meet the net tangible assets requirement. Otherwise they can have a negative NTA. The latter possibility (a negative NTA with a stock price > $5) to remain listed appears to relax the previous conditions, which always required a positive NTA. In fact the NASD seemed to give exemptions to its largest listed companies, such as PAGE, despite their negative NTA. So I suppose the new rules are supposed to make this permissiveness for bigger companies more official. As a practical matter for PNDA, they must sell equity to raise capital anyway, and by doing so, they will raise their net tangible assets. This means that they must sell common stock or preferred stock.