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Linn Energy, LinnCo Shares to Be Delisted from NASDAQ
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Linn Energy LLC recently announced that Securities of Linn Energy and LinnCo LLC (LNCO) will be delisted from NASDAQ and its trading will be suspended before the market opens on May 24. NASDAQ will submit a Form 25-NSE to the Securities and Exchange Commission to remove all the shares of the companies from listing and registration. Reportedly, neither of the companies intend to file plans to regain NASDAQ compliance or challenge the decision of the exchange.
According to NASDAQ rules, a company becomes non-compliant if its average closing share price over a 30-day period is less than $1.00. The company then enters a red zone that could result in the suspension of trading and delisting after six months. However, if the stock price rises above $1 within a stipulated period of six months stock, it can avoid delisting.
Post announcement, Linn Energy shares plunged 16.7% on Monday in the after trading hours. The stock finally closed at 18 cents per share. LinnCo, on the other hand, closed at 12 cents per share. Hence, it is quite evident that the stocks are trading at abnormally low prices, which is the primary reason behind their delisting.
The securities are expected to begin trading the OTC Pink Sheets on May 24 under the tickers LINEQ and LNCOQ, respectively. However, the companies have not provided any assurance on whether their common stock will continue to trade on the OTC Pink Sheets, whether the securities will have enough volume for efficient trading, or whether public quotes for the company’s common stock will be available in the future.
Linn Energy currently carries a Zacks Rank #3 (Hold), which implies that the stock will underperform the broader U.S. equity market over the next one to three months.
Meanwhile, some better-ranked stocks from the broader energy space are EP Energy Corp. , McDermott International Inc. , Murphy USA Inc. (MUSA - Free Report) and Braskem S.A. (BAK - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
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Linn Energy, LinnCo Shares to Be Delisted from NASDAQ
Linn Energy LLC recently announced that Securities of Linn Energy and LinnCo LLC (LNCO) will be delisted from NASDAQ and its trading will be suspended before the market opens on May 24. NASDAQ will submit a Form 25-NSE to the Securities and Exchange Commission to remove all the shares of the companies from listing and registration. Reportedly, neither of the companies intend to file plans to regain NASDAQ compliance or challenge the decision of the exchange.
According to NASDAQ rules, a company becomes non-compliant if its average closing share price over a 30-day period is less than $1.00. The company then enters a red zone that could result in the suspension of trading and delisting after six months. However, if the stock price rises above $1 within a stipulated period of six months stock, it can avoid delisting.
Post announcement, Linn Energy shares plunged 16.7% on Monday in the after trading hours. The stock finally closed at 18 cents per share. LinnCo, on the other hand, closed at 12 cents per share. Hence, it is quite evident that the stocks are trading at abnormally low prices, which is the primary reason behind their delisting.
The securities are expected to begin trading the OTC Pink Sheets on May 24 under the tickers LINEQ and LNCOQ, respectively. However, the companies have not provided any assurance on whether their common stock will continue to trade on the OTC Pink Sheets, whether the securities will have enough volume for efficient trading, or whether public quotes for the company’s common stock will be available in the future.
Linn Energy currently carries a Zacks Rank #3 (Hold), which implies that the stock will underperform the broader U.S. equity market over the next one to three months.
Meanwhile, some better-ranked stocks from the broader energy space are EP Energy Corp. , McDermott International Inc. , Murphy USA Inc. (MUSA - Free Report) and Braskem S.A. (BAK - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>