It use to be said that once a company was de-listed from the NASDAQ it was the kiss of death, not so any more. With Sarbanes Oxley and all the insane reporting requirements it might save your company from incessant lawsuits from investors and the government regulators who are out to destroy free enterprise. Many small NASQAQ companies have spent over $100,000 initially to set up the controls for accounting compliance of Sarbanes Oxley and now the ongoing scrutiny for transparency runs a good 1-3% of gross sales. But that is not the kicker; the real problem is when company executives make decisions for the regulator over sight compliance and what is best to keep the company out of trouble or from receiving a letter from Elliot Spitzer or the SEC. Once that happens the stock price tumbles and once in the sites of a regulator they are going to have to find something to prove self worth, even if they have to lie a little or fudge their investigation to make something up. Which is all to common as any insider will tell you.
A company which is delisted or deregistered stands to have an instant gain on their bottom line and will have the advantage of making decisions based on market advantage and profit goals rather than appeasing brain dead regulators and thousands of pages of new rules with millions of pages of new case law.
Some companies are seriously thinking of going private, not going public. Being de-listed now is no longer the kiss of death but rather it breaths new life blood into a stagnant innovative company that has turned bureaucratic due to Sarbanes Oxley. One CEO we talked with said that he feels the need to call the his lawyer if he wishes to use the restroom to make sure it is legally safe and once in the commode takes a clip board to insure he correctly counts the toilet tissues used. Think on this absurdity.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
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