Wireless Ronin Stock Dips Below $1

Chris Sheldrake

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: –

  1. The NASDAQ clock starts ticking on de-listing
  2. Any mutual fund holders traditionally have to sell (they aren’t allowed to invest in penny stocks)
  3. Speculator pressure goes way up
  4. 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.


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