Towerstream Corp (NASDAQ:TWER)
Towerstream has been one of my favorite stocks to watch as of late, and for good reason. The company has quite a bit going for it at the moment. Watching the stock throughout the day, we've seen massive afternoon gains. So, I've been doing a bit of digging, and I think I found the reason for the gains. This seems to be a late reaction to news that was released yesterday. Today, we'll talk about the news, what we're seeing in the market today, and what we can expect to see from TWER moving forward. So, let's get right to it...
TWER Receives Extension From NASDAQ
Towerstream has been facing a couple of big issues when it comes to NASDAQ listing. Recently, the stock was in danger of being delisted from the index because it didn't reach the $1 minimum bid requirement. As a result, the company processed a reverse stock split, bringing the value of the stock up well past the minimum bid requirement.
Nonetheless, TWER has another listing hurdle to find its way over. In order to stay listed on the index, the company needs to meet the $2.5 million stockholders' equity requirement. While the company is far from meeting this requirement at the moment, they believe that with an extension, they will be able to meet this requirement. Today, it was announced that the company has received the extension.
With the extension in place, TWER has until November 22, 2016 to meed the $2.5 million stockholders' equity requirement before being delisted. In a statement, Philip Urso, CEO at Towerstream had the following to offer with regard to the extension...
“We have already effected a reverse stock split to meet the minimum stock price required by NASDAQ rules and are making progress towards meeting the $2.5 million shareholders' equity requirement by the November date...”
How The Market Reacted To The News
As investors, we've learned to watch the news. After all, the news moves the market. When positive news is released with regard to a publicly traded company, we can expect to see the stock gain. In this particular case, the news was indeed positive. However, it doesn't seem as though the masses found it until later this afternoon. Nonetheless, TWER is gaining big in afternoon trading today. Currently (3:09), the stock is trading at $3.15 per share after a gain of $0.67 per share or 26.98% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from Towerstream. While the company is facing delisting, the extension announced yesterday will give it the time it needs to solve the problem. So, delisting is becoming less and less of a concern. On the other side of the coin, things are going great with regard to business operations. Through recent updates, we've learned that a large percentage of new contracts are the company's most profitable contracts. Also, TWER has worked hard on bringing its services to new commercial buildings. While there is an initial investment to be made here, I do believe that TWER is working its way up and will grow to be something great in the long run.