Express (OTCMKTS:EXPR) has now officially been de-listed from the NYSE, with shares of EXPR stock now trading on the over-the-counter market. This process began on Wednesday, and as the company reported in a press release, investors will still be able to invest in the company, though many don’t seem to be willing to do so. Shares of EXPR stock are trading about 10% lower in today’s session as investors look to continue to take a bearish stance on this fashion retailer.
On a year-to-date basis, EXPR stock is down a whopping 83%, signaling serious selling pressure for this embattled retailer. Today’s price action appears to be part of a downward spiral many companies see when their shares are delisted from a major exchange, as failing to meet certain market capitalization minimums forces a given stock onto the OTC exchange, which is less liquid and more prone to larger price swings.
With this in mind, let’s dive more into the delisting and what to make of this big move in Express today.
EXPR Stock Plunges As Shares Officially Delisted from NYSE
Express is among the apparel retailers that have been hit hard by the market as various dynamics in this sector continue to shift negatively. The fact that Express saw its average global market capitalization fall to below $15 million over a 30-day period is certainly concerning, and investors have continued to sell shares on the over-the-counter exchange. At the time of writing, Express’ valuation sits just above $5 million, with many fully expecting some bankruptcy announcement to be forthcoming.
The company’s management team has said that this delisting decision doesn’t reflect the company’s ongoing strategic moves to streamline its business and improve efficiency. But in this case, the market has clearly disagreed, with the company previously stating that a potential debt restructuring deal could be in the works. For many investors, that sounds a lot like a potential bankruptcy process, leading to increased short bets on the company and continued selling pressure.
At current levels, I think EXPR stock is simply too risky for investors looking to dumpster dive to consider. And while it’s possible Express could emerge from some sort of restructuring deal as a viable entity, there are too many “ifs” for many investors to consider this stock worth the gamble. Thus, Express may be a company best viewed from the safety of the sidelines right now.
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On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.
