Six Flags Inc. / USA: Impending Delisting on NYSE

According to press releases, Six Flags Inc. was officially informed in late October that the market capitalization of the park operator listed on the New York Stock Exchange had fallen below the defined value required for a listing. The 30-day average value of Six Flags’ market capitalisation had last swung below the 75-million dollar mark. In general, a company’s value is on knife’s edge if its stock falls below a dollar. Six Flags had recently marked a 52-week-low of 0.25 US dollars. Within the next few weeks, the company can present the NYSE with some concrete suggestions to hoist the value beyond the required minimum market capitalisation. If this is successful then everything will stay the same. However, should Six Flags’ market capitalisation fail to be significantly boosted with a lasting effect, a delisting on the famous New York Stock Exchange will impend. As a consequence, the stock would land on a smaller, typically less liquid trading market, which would make buying and selling the stock more difficult. (eap)