A near death experience forced the Company to protect its Nasdaq listing by a reverse split . That is in order to maintain a trading price of more than $ 1.00 it consolidated the shares – 50 ” old” shares selling at 6 cents were to be exchanged for one share which in theory would trade at about $3.00 ( 50 times 6 cents).
Instead the shares plunged to 65 cents – then went on a wild ride- back up to over $3.50 and back down in the last three days.
The company has arranged the purchase of two new ships and manages others . It appears to me that management wants to rebuild a shattered entity. In the meantime the stock has become a plaything for penny players. It also has a coal mine in the U.S.
I am not a penny stock player but here is a down and out member of the down and out shipping sector that appears worth some spec money.The Baltic Dry Index which in 2008 before the decline was over 10,000 is now below 1000. The sector – as I have written is one to watch – but not invest in at this time . When the turn comes it will be for years . The turn depends on a return to growth in China, iron ore and grain shipments that will trace an upturn in the world economy.- but most important is China which appears to be growing again.
Thursday I purchased 1000 shares at $ 1.60 following a dramatic decline during the day from near $3.00 to the $1.60 level.It appears that panic set it and I expect that on Friday cooler heads will prevail and the stock will recover as bargain hunters ( and spec players) try to calculate a value for a beat up stock.
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NEWLEAD HOLDINGS LTD(NEWL:NASDAQ, US)
|Open||1.80||P/E Ratio (TTM)||—|
|Last Bid/Size||2.01 / 2||EPS (TTM)||-56,034.36|
|Last Ask/Size||2.02 / 59||Next Earnings||—|
|Average Volume||21,173,255||Dividend Yield||0.00%|
|Day High||2.10||Ex-Dividend Date||—|
|Day Low||1.76||Shares Outstanding||10.1M|
|52 Week High||8,235.00||# of Floating Shares||3.06757M|
|52 Week Low||0.3788||Short Interest as % of Float||1.65%|