Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: 54 companies currently face delisting from the NASDAQ due to options backdating scandals foiling their ability to issue financial reports within NASDAQ's strict reporting timelines. Among them are some of America's best known companies such as Apple (NASDAQ:AAPL), Altera (NASDAQ:ALTR), BEA Systems (BEAS), Children's Place Retail Stores (NASDAQ:PLCE) and Comverse (NASDAQ:CMVT). It is unlikely that Nasdaq will take an extreme measure like delisting top-tier companies. Their rival, the New York Stock Exchange is far less strict in enforcing financial reporting deadlines; seven NYSE-listed companies have delayed quarterly or annual filings amid options probes, but only a missed annual report is grounds for NYSE delisting -- and only then if the filing is more than six months late. The NYSE, which is comprised of generally larger companies, feels their approach is more appropriate in balancing investor and corporate needs. But some analysts believe NASDAQ's policy is "more shareholder friendly" because "investors definitely need timely information." On the other hand, if NASDAQ relegates too many companies to the Pink Sheets, it could threaten hopes for a broad tech rally.
Related links: • Apple's Options Problems Deepen - Likely To Restate Results • Apple Shares Rise As Investors Express Relief Over Jobs' Retention • Take Two Interactive's Delisting Notice • Novell Receives Nasdaq Delisting Notice
Potentially impacted stocks and ETFs: Nasdaq Stock Market Inc. (NASDAQ:NDAQ), NYSE Group Inc. (NYSE:NYX), NASDAQ 100 Trust Shares (QQQQ), iShares NYSE 100 Index (NYSEARCA:NY)
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