Imperial Petroleum Stock Threatens to Break Below $1 — Watch Out!

Stock Market

Few words are scarier for investors than the “d”-word: de-listing. There hasn’t been a de-listing threat for Greek oil transportation company Imperial Petroleum (NASDAQ:IMPP) — or at least, not yet. Could IMPP stock get actually kicked off of the Nasdaq exchange in 2022?

This question certainly wasn’t top-of-mind for many investors in early March, when the Imperial Petroleum share price was above $7. After a stock-price collapse, however, there are hazards to consider.

We’re not just talking about breaking down through technical support levels here. Sure, falling through $1 would be bad from a technical perspective, but there’s more to the story here.

As IMPP stock gets uncomfortably close to $1, traders should consider the Nasdaq exchange’s listing rules. Notably, if a stock fails to meet the minimum closing bid price of $1 for 30 consecutive trading days, this can trigger de-listing from the Nasdaq.

Don’t misunderstand — the Nasdaq exchange isn’t likely to de-list a stock immediately for breaching that guideline. Rather, Nasdaq will probably start off by issuing a deficiency notice to the company.

Still, it’s generally not a positive sign when the specter of a de-listing threat looms. If IMPP is kicked off of the Nasdaq exchange, there’s no guarantee that Imperial Petroleum will continue trading on another exchange.

Overall, it’s unknown whether Imperial Petroleum can get buy-side investors back into the fold. The company isn’t on ideal financial footing, having posted a 34-cent earnings loss per share (basic and diluted) in 2021’s fourth quarter.

Could the meme-stock crowd step in and save the day? It’s possible, as it may have been responsible for an astounding 1,700% single-day share-price move late last year.

However, it’s probably not a great strategy to sit around and hope that the meme-stock mob saves IMPP stock from a potential de-listing scenario. Instead, investors might just want to sit on the sidelines. The most cautious thing to do, really, is to see how this story plays out over the next few weeks.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content -and crossed the occasional line -on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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