THQ Manages to Avoid NASDAQ Delisting

Though THQ is far from in the clear, one headache has been removed: the threat of being delisted on the NASDAQ stock market.

The publisher announced this morning it had maintained $1.00 per share price during last 10 business days, meaning it’s no longer on NASDAQ’s watch list. "Phew," said THQ management. Probably.

THQ made some moves lately, including a 1-to-10 reverse stock split, that helped make this happen.

The Street has an informative article on why a NASDAQ delisting is bad for all parties involved, including the one case where it could be a good thing: the company make that decision on its own.

“Still, as a shareholder, having your company delisted can have severe effects on your portfolio. Obviously, most companies that are delisted were in dire straits to begin with, but the act of delisting can actually force their stock prices to decrease further.

While the intrinsic value of the stock hasn't changed since the day before the stock was delisted, the very fact that it was ejected from its exchange is enough to make the market factors push its price even further below water. That stock that you once paid your hard-earned cash for is likely pretty close to worthless now.”

The weight on Darksiders II’s shoulders to perform well next month is even greater now.

Though THQ is far from in the clear, one headache has been removed: the threat of being delisted on the NASDAQ stock market.

The publisher announced this morning it had maintained $1.00 per share price during last 10 business days, meaning it’s no longer on NASDAQ’s watch list. "Phew," said THQ management. Probably.

THQ made some moves lately, including a 1-to-10 reverse stock split, that helped make this happen.

The Street has an informative article on why a NASDAQ delisting is bad for all parties involved, including the one case where it could be a good thing: the company make that decision on its own.

“Still, as a shareholder, having your company delisted can have severe effects on your portfolio. Obviously, most companies that are delisted were in dire straits to begin with, but the act of delisting can actually force their stock prices to decrease further.

While the intrinsic value of the stock hasn't changed since the day before the stock was delisted, the very fact that it was ejected from its exchange is enough to make the market factors push its price even further below water. That stock that you once paid your hard-earned cash for is likely pretty close to worthless now.”

The weight on Darksiders II’s shoulders to perform well next month is even greater now.

this is fantastic news

PLease do welllll!!!!

Hold... HOLD ... BOLD!!!!!

We've managed to avoid drowning!

So, if THQ is pretty much worthless, but they still appear like they want to continue on (and still have profit potential in their three big studios)... isn't right now the right time to buy?

Great news.

Great news. Just bought Warhammer 40k space marine for $10 and think it is absolutely great. As a big fan of gears of war, I can appreciate another great third person shooter.

Dawn of War 3 plz.

Or ya know, do something original and good. That'd be cool too.

I just bought Saint's Row 3 during the summer steam sale, my one and only THQ game, and I couldn't be more glad that they're on the right track for recovery.

They have a lot of potential, it would be a shame for them to lose it.

More Dawn of War and Company of Heroes games THQ please.

For a moment I almost regretted selling my $700 of THQ shares, until I realized they did this via a reverse stock split.

NOPE NOPE NOPE. Glad I sold when I did lol.

Good luck to THQ. They have some awesome games coming soon. We all hope they survive.

Well, I for one, am buying Darksiders 2 :o

@Brodehouse said:

So, if THQ is pretty much worthless, but they still appear like they want to continue on (and still have profit potential in their three big studios)... isn't right now the right time to buy?

Let's ask Pachter.

Actually, nevermind, I'll just take 800 shares plz.

Every 5 shares purchased and you get a free uDraw tablet.

I was buying Darskiders 2 anyway... but now more people need to do it :D Spread the love, people.

Let us all go buy Darksiders 2 now!!

With Dawn of War 3 and Darksiders 2 due this year, and Metro:Last Light and Warhammer 40K:Dark Millennium due out next year, here's to hoping THQ can survive!

I will be doing my part and buying darksiders 2. Hope they can stay afloat.

Watching how their next few games sell is going to be very intriguing.

What is "a 1-to-10 reverse stock split" exacly?

Vigil, Volition and Relic are some of my favourite developers, really hope they can keep going.

Also that DS2 collectors edition is looking pretty sweet.

PC upgraded. Release Company of Heroes 2, and I will give you money.

I feel like the headline should read "THQ manages to avoid NASDAQ delisting...for now." I'm approaching this with no business experience, but I still don't think THQ needs to be a public company right now. They tried to reach the sun but they did not become gods like EA and Activision. Instead they got blinded and burned.

@Brodehouse said:

We've managed to avoid drowning!

But they are still stuck in the pool

@Lurkero said:

I feel like the headline should read "THQ manages to avoid NASDAQ delisting...for now." I'm approaching this with no business experience, but I still don't think THQ needs to be a public company right now. They tried to reach the sun but they did not become gods like EA and Activision. Instead they got blinded and burned.

@Brodehouse said:

We've managed to avoid drowning!

But they are still stuck in the pool

You're probably right about that. It's no guarantee, absolutely.

Not really that great of a thing from a shareholders perspective(Im not one). Someone having 100 shares now only has 10, but i guess you gota do something to stay on the NASDAQ

@SmilingPig said:

What is "a 1-to-10 reverse stock split" exacly?

For every 10 shares you had before the reverse stock split, you now have 1. So if you had 200 shares, you now have 20. It merges the stock to make the individual shares worth more, but theres less of them so the company as a whole is still worth the same amount. This was done purely so the stock wouldn't be delisted. THQ is still in dire straights and still has a good chance of going under.

This should of been filed under THQ Deathwatch 2012

@WilliamHenry: Ty for the clarification.

Well they did a 10-1 reverse stock split. They better have fucking avoided delisting. Even so, it's going to be a long time before any THQ investors see a real return on their cash.

Hopefully the company can focus on putting out quality games now. Darksiders II may be a make or break title.

@Lurkero said:

I feel like the headline should read "THQ manages to avoid NASDAQ delisting...for now." I'm approaching this with no business experience, but I still don't think THQ needs to be a public company right now. They tried to reach the sun but they did not become gods like EA and Activision. Instead they got blinded and burned.

@Brodehouse said:

We've managed to avoid drowning!

But they are still stuck in the pool

Like a sim in a pool with no ladder.

Never played Darksiders. But I don't want to see THQ go under at all....

@SmilingPig said:

What is "a 1-to-10 reverse stock split" exacly?

When a company does a reverse stock split they combine high quantity, small value shares into low quantity, high value shares.

For example, say THQ shares were worth $0.99 per share, if you had ten of them, after the reverse split you'd have 1 share instead of 10, and it would be worth $9.90 instead of $0.99.

@airmikee99 said:

@SmilingPig said:

What is "a 1-to-10 reverse stock split" exacly?

When a company does a reverse stock split they combine high quantity, small value shares into low quantity, high value shares.

For example, say THQ shares were worth $0.99 per share, if you had ten of them, after the reverse split you'd have 1 share instead of 10, and it would be worth $9.90 instead of $0.99.

Exactly. So, at the end of the day, shareholders have less stock than they originally held, but its all worth more, so the value equals out.

The upside of this is that if your stock is too cheap, and is violating NASDAQ rules, you can do this kind of reverse split to increase the price and avoid getting delisted.

Good news is good news, even if it's really just dire straits hidden under the news... and for THQ I'll take all the good news I can get for them. I'm in your corner, buying all the THQ stuff I can....

I blame UDraw

Hooray for THQ!

As for the analyst guy... all the stock market is is Press Your Luck only with way more money involved. It's amazing how well assholes like that are paid to basically flip a fucking coin. It infuriates me to no end.

I will be buying Darksiders II on day one even though I couldn't finish the first. I'll do anything just to make sure Company of Heroes 2 makes it to the market.

The potential is there for a huge comeback. Don't fuck this up, THQ.

I really hope Darksiders 2 succeeds. THQ has some great IPs that I want to see more of.

I should buy some stock and hope Darksiders II sells millions and millions.

Like a sim in a pool with no ladder.

Brilliant.

Is it even possible to save THQ at this point?

It's cool to be worth less than a dollar a share for an extended period. NASDAQ be hating.

@dvorak said:

It's cool to be worth less than a dollar a share for an extended period. NASDAQ be hating.

Their house their rules.

seems like darksiders 2 and saints row 4 are the only things that appear to be sure hits for them and even then it doesn't seem like enough.

Sucks.

Darksiders 2!!!

Help me - Darksider 2 - you're my only hope...

...and will be my next fullprice videogame pruchase.

They're going all out it seems for the end of the year/beginning of next year. Darksiders 2, Metro: Last Light, Company of Heroes 2. Hopefully they do well.

@hbkdx12 said:

seems like darksiders 2 and saints row 4 are the only things that appear to be sure hits for them and even then it doesn't seem like enough.

Sucks.

lets not forget metro last light is coming out also.

@patrickklepek: Repost.