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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: go4it who wrote (31914)	4/28/1998 9:40:00 AM
From: Chuca Marsh	Respond to of 35569

You're space setting CTRL "C" , actually I didn't know that no spaces were allowed!C2

To: go4it who wrote (31914)	4/28/1998 1:34:00 PM
From: Raye Derickson	Respond to of 35569

Morning All......came across an article from way back in '96 about the dynamics of the accelerated number of NASDAQ delistings. I would also wonder if the proposed merger with AMEX has great bearing on these delisting proceedings. This outdated article mentioned there were 600 companies slated for review, comprising 11% of the NASDAQ at that time. Does anyone know the approximate number to date?? Even without the question of IPM's press releases, its doubtful they would have met the market cap/share price minimums under the tougher rules. Suffice to say IPM is only one of many delisted, perhaps hundreds, and that smells of an AGENDA irrespective of the individual companies under review. Hope you find the article interesting: December 2, 1996 Washington Beat Troubled companies face delisting under tough new Nasdaq rules ------------------------------------------------------------------------ Sougata Mukherjee ASHINGTON, D.C.-- Financially troubled companies will be given at least a six-month reprieve by Nasdaq market officials before being delisted by the fast-growing stock market for not complying with tougher eligibility standards. The move to delist companies with poor fundamentals comes at a time when the nation's fastest-growing stock market is proposing significantly higher entry and maintenance standards for companies that want to be listed on Nasdaq. In recent months, the Nasdaq market has been rocked by embarrassing scandals involving penny stocks and stock manipulations. About 5,400 companies currently trade on the Nasdaq system. Some 600 are exposed to delisting under the proposed valuation system, Nasdaq officials said. Nasdaq, which is run by the National Association of Securities Dealers, operates both the Nasdaq National Market and the Nasdaq SmallCap Market. Companies that face the biggest risk of delisting are the ones that currently trade on the Nasdaq SmallCap market. "We estimate about 29 percent of the companies will have to improve their books to remain listed," says Perry Peregoy, vice president for listing qualifications at Nasdaq Stock Market Inc. "We will, however, give them some time to meet our proposed guidelines." Collectively, the SmallCap market has 1,358 companies with a total market cap in excess of $4 billion. Among the new rules proposed by Nasdaq, the stock market would bar any company with a share price below $1 from the small-cap market. Officials also would drop companies that have net tangible assets of less than $2 million. Nasdaq is also proposing that companies have a minimum of two independent directors and an audit committee with a majority of independent directors. "We will require these companies to have annual shareholders meetings," Peregoy says. The proposed listing requirement is likely to change the landscape of the initial public offering market in the coming years, according to securities lawyers who help companies go public. Larry Robbins, a North Carolina attorney who specializes in taking technology-related companies to the public market, says stakes are significantly higher for the new companies coming off an IPO. "There's a stigma attached to the fact that if you fall off the small-cap or the national market system, your company may have some serious problems," he says. "Investors are likely to shy away from such a company, and that could be a start of the downward spiral." In order to keep a stock active and noticed among individual and institutional investors, Robbins predicts industry analysts will play a larger role. "Having analysts' coverage will be more important than ever," he says. "They will keep the stock in the spotlight and hopefully keep it moving. Of course, fundamentals have to be correct." Also, the boutique investment banking firms that have sprouted across the country from Denver to Miami are likely to get a bigger piece of the securities business. Large firms such as Merrill Lynch and Goldman Sachs are likely to shy away from doing deals for companies that could be delisted. "Reputation and perception is very important for the big firms," analyst Robbins says. "Now, even those borderline risky deals will land up with the boutiques." Nasdaq's Peregoy hopes the new rules will be enough to siphon off the troubled companies which in recent months have become a major headache for a market that also boasts Microsoft, Intel and MCI. Nasdaq has dropped several stocks this year in the wake of charges of inflated balance sheets and stock manipulation. Just two months ago, Nasdaq charged Comparator Systems Co. with inflating company assets. That company's market value skyrocketed to $1 billion before Nasdaq's action. The proposed rule will be considered after a 30-day comment period, after which Nasdaq will write the final language. It will then go to the Securities & Exchange Commission for a final approval. Sougata Mukherjee is the Washington bureau chief for Houston Business Journal. c 1996, Houston Business Journal