Only a few days ago we wrote after the Q3 Wireless Ronin (Nasdaq: RNIN) conference call that their stock traded at a market capitalization approximately USD 1 million above the cash on hand – you figured it couldn’t get much worse but Tuesday saw, for the first time their stock dipping below the one US dollar level.
A couple of things occur when that happens: –
- The NASDAQ clock starts ticking on de-listing
- Any mutual fund holders traditionally have to sell (they aren’t allowed to invest in penny stocks)
- Speculator pressure goes way up
- Negative impact on bank covenants and minimum cap/value for lending
Some of our readers have found our critique and opinion of Ronin a bit harsh – no apologies there we write the way we see it.
Anyway last Friday, 7th November 2008 Bill Gerba wrote on his blog a very good piece entitled ‘Wireless Ronin (RNIN) takes a beating. Will they survive?‘ – it’s well worth a read and pretty much agrees with what we have had to say.