Another struggling penny stock is about to get the Nasdaq axe. Indeed, Joann (NASDAQ:JOAN) stock is scheduled to be delisted on March 28, 2024. This comes after the crafts and fabric retailer filed for Chapter 11 bankruptcy earlier this month.
JOAN stock has plunged more than 75% for the past one month and currently trades at around 12 cents per share. With that in mind, it’s easy to see why the troubled company has not been able to comply with the Nasdaq’s listing requirements. Joann could have appealed the exchange’s decision, but Investing.com reports that the firm has chosen not to do so. That should tell investors everything they need to know about its future.
The End Is Approaching for JOAN Stock
Ever since the beginning of March, everything seems to have gone wrong for Joann. Earlier this month, data from a market research platform flagged the significant risks JOAN stock posed. Now, we know just how correct these predictions were.
Indeed, JOAN has fallen so far that it hasn’t even been able to attract the attention of the r/WallStreetBets crowd. Now, the stock is careening toward an unfortunate end and there seems to be no chance of saving it.
The truth is that JOAN stock has been struggling for a long time. A micro-cap penny stock, it hasn’t traded above $1 since September 2023 and has fallen more than 90% over the past one year. The company has spent 80 years cultivating an image for itself as a pillar of American retail. However, the firm appears to have been unable to adapt to a shifting economy and changing retail landscape.
The collapse of Joann calls to mind a similar story involving another retailer. In April 2023, Bed Bath & Beyond also filed for Chapter 11 bankruptcy and, less than a month later, BBBY stock delisted from the Nasdaq. Once a popular meme stock, the struggling company’s story ended in tragedy. But on top of that, its investors received nothing from the bankruptcy plan. Anyone still holding JOAN stock could be destined for a similar fate.
A delisted stock can still trade on an over-the-counter (OTC) exchange. But that doesn’t mean it will be a good investment. In the case of JOAN stock, trading OTC likely won’t make a difference. The company seems to be giving up and smart investors will follow suit.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Samuel O’Brient did not hold (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 InvestorPlace.com Publishing Guidelines.
