Agrrawal quoted in Sun Journal piece about Verso stock
Pankaj Agrrawal, associate professor of finance at the University of Maine, was quoted in a Sun Journal article about shares of Verso Corp.’s stock dropping as low as 7 cents Friday.
Verso earlier announced it would eliminate 300 jobs at the Androscoggin Mill in Jay this winter and when Verso’s stock dropped to 15 cents a share Sept. 21, the New York Stock Exchange started taking steps to delist the stock because it didn’t meet listing criteria. Agrrawal said Verso being traded on the over-the-counter market would introduce additional volatility.
“You become a penny stock, and then the type of people that invest in you, they’re sort of speculators as opposed to investors who are true long-term buy and hold (investors),” he was quoted in the article. “I think the company should call an annual shareholders meeting and ask (whether to pursue that). You have to make a choice: Bankruptcy is going to unleash certain things, but it brings with it certain protections.”