The stock of First Place Financial Corp. (PINK:FPFC) took serious hits as soon as the company announced it had received the letter from the NASDAQ staff. The session on the OTC Pink has only dragged FPFX deeper.
On Friday, FPFC closed down another 55.88% at $0.15, although the stock had traded higher throughout the session.
The main reason for the delisting is that FPFC has failed to file its financial reports on time. First Place Bank is a wholly-owned subsidiary of FPFC, and in a way the reason for the company’s inability to file on time.[BANNER]
Back in 2010, the former Office of Thrift Supervision contended that FPFC had understated the level of loan loss reserves for First Place Bank. The company claims it has been working to determine that level since then.
In a recent 8-K, FPFC admitted that the reduction to the shareholders’ equity, as presented in the 10-K for 2010, will exceed $110 million. Previously FPFC had disclosed the amount to be at least $60 million. It should be noted that the final amount hasn’t yet been determined.
If one believes FPFC will somehow recover from this crisis, the current situation may seem opportune. However, at this moment, there isn’t much going FPFC’s way, and investing on mere assumptions can be devastating. Perhaps, there will be more clarity when FPFC provides some more current information about its financial performance.
