Typically, if a penny stock is delisted from a major exchange such as the Nasdaq or NYSE, it raises concerns among investors. However, a savvy investor may see an opportunity in this type of situation. For instance, let’s look at Texas’s Sanchez Energy Corp. (SNEC) which is currently trading around $0.19.
Sanchez Energy, an oil and gas penny stock, was once ranked as “the Eagle Ford Shale’s third most profitable driller.” But after a rough end to 2018, the company was delisted from the NYSE for failure to meet three crucial deadlines. First, the company fell below the $1-per-share mark in mid-November. Second,
The End Of The Road For This Penny Stock?
Oddly, the company decided not to
Sanchez Energy Chief Financial Officer, Cameron George confirmed this idea by stating that the delisting will “make it harder for the company to raise money, attract investors and obtain financing”. The company is now in the process of filing for bankruptcy in a hope to “explore strategic alternatives to strengthen its balance sheet and maximize the value of the company.”
A Brighter Outlook For Oil & Gas Stocks
The company was once referred to as a third most profitable driller. It produced more than 6.4 million barrels of crude oil and over 181.9 billion cubic feet of natural gas as recently as 2018. This latest move is a huge regression.
The company recently reported Q4 2018 and 2019 outlook. Sanchez stated it remains committed to strengthening the balance sheet of this penny stock. It is also evaluating strategies to maximize