Did anyone else notice that Ronin’s stock closed below a dollar on Friday? [1] We last wrote about them being below a dollar in late 2008 [2] when they were 50 cents.
[1]In their defence back then, the whole world was going to hell, it was post Lehman Brothers and everyone was hurting.
It should surely be a little different now though?
As we’ve said before the below-a-buck price is important as: –
- Many funds/investors, won’t buy stocks under $1 because of the chances of stock manipulation
- They are now literally a ‘penny stock’
- It further challenges them in raising additional capital on private markets
It’s too early for us to write them off just yet (and we have done that before and they have bounced back and proved us wrong) but they are, as always, certainly worth watching.