Just two days ago on these pages, we warned that the share price of Diversicare Healthcare Services was trending dangerously low. We weren’t kidding. The next day the shares were delisted from NASDAQ because they no longer met the minimum market value requirement of at least $35 million. That’s for sure, and with several days of double-digit price declines, the market cap of less than $10 million is just 30% of the required minimum.
Management’s appeal to avoid the delisting decision was denied. The share price hit a 52-week low of $1.16 yesterday, down nearly 50% in just a few days. Unfortunately, it doesn’t take much when your shares are under $2.00 each. Just $70,000 of trades took the price down to that new low. It did, however, recover some of that loss as opportunistic buyers stepped in.
Trading volume was high for a stock that sees average daily volume of just a few thousand shares, and often just few hundred. We hope they make a comeback, but what a cheap price for anyone who wants a platform of leased properties to build on.
