WaferGen Bio-systems, Inc. WGBS recently received a letter from The NASDAQ Stock Market which notified that the stock has failed to satisfy a continued listing norm.
WaferGen’s stock closed below the minimum of $1.00 per share for 30 consecutive business days (as of Dec 18, 2015), violating Nasdaq’s continued listing rule. The letter, however, has no immediate effect on the listing/trading of the stock.
The company has been granted 180 days (or until Jun 20, 2016) to reclaim conformity with the listing rule. If the share price closes at atleast $1.00 per share for a minimum of 10 successive days before the given time frame, the company will regain compliance.
If WaferGen fails to fulfill the requirements by Jun 20, 2016, but complies with the Nasdaq Capital Market initial inclusion criteria, the company will be handed an additional 180 days. If WaferGen fails to regain compliance and is also deemed ineligible for additional time, the company’s stock will no longer be listed on Nasdaq.
The development will definitely disappoint investors, as delisting of a stock is not what they are hoping for. However, we believe that WaferGen has the right factors that might drive its share price, going forward.
WaferGen reported decent third-quarter 2015 numbers with both the top and the bottom line improving on a year-over-year basis. The SmartChip platform continues to be a key catalyst, as reflected by its strong contribution to product revenues.
We believe that the newly launched product – ICELL8 System – will help the company gain better market traction. ICell8 single-cell systems’ ability to identify different cell types will help researchers discover new drugs and therapeutics faster and at a lower developmental cost. This is expected to boost WaferGen’s existing customer base, which will eventually make the stock attractive for investors going forward
Zacks Rank & Other Key Picks
WaferGen currently has a Zacks Rank #2 (Buy). Other well-placed stocks in the medical sector are Masimo MASI, Steris Plc STE and Abiomed ABMD. While Masimo and Steris sport a Zacks Rank #1 (Strong Buy), Abiomed has a Zacks Rank #2 (Buy).
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