Yesterday, shares of General Steel Holdings Inc (NYSE:GSI) were halted twice. Once was due to unusual volume, and the second time it was for news. That second halt lasted all day and left investors questioning what could possibly be going on.
Speculation included a possible merger or acquisition, and some investors even thought that perhaps the company was filing banruptcy, although none of this was ever confirmed by anyone. With the stock up to almost 106% at the time of the second halt, investors didn’t know what to make of the situation. Was there insider trading from someone who knew of pending “good” news? Is this the news that was causing this stock to stop trading? No one really knew, but this morning, General Steel Holdings Inc (NYSE:GSI) issued a press release and it was the last thing anyone had expected to see.
Apparently the news that everyone was getting excited about, isn’t all that exciting afterall. In fact, it is a bit discouraging. The New York Stock Exchange has notified General Steel Holdings Inc (NYSE:GSI) that their shares have fallen below the minimum “continued listing standard set forth in Section 802.01C of the Listed company Manual”, required for the average closing price. The NYSE requires an average closing price of $1.00 per share of common stock over a consecurtive 3-trading-day period, and shares of GSI fell below this.
“The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period, the Company has a closing share price and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month,” the General Steel Holdings explained.
Still this leaves investors questioning yesterday’s huge jump in price. Was this simply a ‘Pump and Dump’, or perhaps there is more news to come?
General Steel Holdings, Inc. operates a portfolio of Chinese steel companies. The company has a market cap of $45.42 million. The Firm serves various industries and produces a range of steel products, including reinforced bars , hot-rolled sheets and high-speed wire. It currently has negative earnings. The Firm has four regional divisions in the People’s Republic of China (PRC): Longmen Joint Venture in Shaanxi province, Maoming Hengda in Guangdong province, Baotou Steel Pipe Joint Venture in Inner Mongolia province and General Steel (China) in Tianjin City.