Out on TheStreet
Cramer’s site risks Nasdaq delisting
TheStreet, the struggling financial news site cofounded by Jim Cramer, is in danger of getting delisted by Nasdaq because its share price has traded at below $1 for more than 30 business days.
The exchange will delist TheStreet on June 12 if its shares don’t trade above the dollar level for 10 straight days before that date, the news site disclosed in a regulatory filing.
Shares of TheStreet are down 40 percent this year — and traded down 3.3 percent on Monday, to 89 cents.
Insiders, including Cramer, the company’s largest shareholder with a 9.8 percent stake, have been buying up the stock on the cheap — but the moves weren’t enough to offset the 973,951 shares that Rag- ing Capital and its chairman, William Martin, dumped on Dec. 13, cutting its take from 9.3 percent in June to 6.3 percent.
The delisting warning comes only weeks after Lake Street Capital initi- ated coverage on Dec. 8 with a “buy” rating with a target price of $2 a share.
In the third quarter ended Sept. 30, the company swung to a loss of $1.2 million from a profit of $354,326, or 1 cent a share, in the year-earlier period.
Revenue fell 9 percent in the period, to $15.2 million.
Wall Street is expecting more red ink in the current quarter.
David Callaway, formerly at USA Today, was brought in as the new CEO in July to replace Elisabeth DeMarse, who was forced out in February. He has been scrambling to reposition the company and cut staff.
Even though he has no active role at TheStreet, Cramer, the host of CNBC’s “Mad Money,” is still reaping some nice rewards at the sagging company.
While he draws no salary at TheStreet, Cramer will be paid a licensing fee of at least $2.5 million by the company in 2016.
That is down from the $3 million in licensing fees paid in 2015.