Bears Are Right To Worry About Molecular Data (MKD)

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Taking a look at Molecular Data Inc. (NASDAQ: MKD) there is little to marvel at, or even panic over. Its share price alone has been largely stable without deviating too much in the last 3 months. However, taking a broader look at the stock would reveal a plummet of almost 92% in the last 12 months.

The Deadly Notification by NASDAQ to MKD

Talks about a possible delisting of Molecular Data has been dominating the discourse surrounding the stock for a few months now. This has understandably contributed to the pessimism surrounding the stock. The notification earlier this year by NASDAQ, communicating compliance failure with a minimum bid price of $1, threatens the stock’s prospects at the exchange. A hearing has been called where the company will make its case before a final decision will eventually be made. The stock’s present price of $0.55 worsens its predicament and has many speculating that delisting may be imminent. Despite this, however, its short float still stands at a modest 7%, indicating that many are choosing to wait and watch developments.

Molecular Data Future Outlook

Before the company can focus on a forward path, its present focus remains its fight for survival. Getting delisted on NASDAQ could send MKD crashing down, which would have dire consequences in terms of its financial viability. The stock has already been facing the brunt of Chinese Covid-related headwinds, that have sent even the mightiest of stocks on their knees. A penny stock such as MKD hardly stands a chance to soar in such conditions. Even in the case of a positive result coming from the NASDAQ hearing, the company would need to work on its financial sustainability.

Conclusion

MKD is arguably facing one of the worst circumstances and is eagerly hoping for a positive update regarding its NASDAQ non-compliance hearing. Market participants are eagerly watching as MKD has already been heavily driven down in the last year.

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