Crown ElectroKinetics (NASDAQ: CRKN) stock should rise 60 times, or 6,000%, at the open today. CRKN stock isn’t going to rise that much because the management has finally learned how to run the company profitably. But we could, if we were feeling very generous indeed, suggest that it’s a part of the whole process of sorting it out.
The base and single problem being solved here is that Crown Electro will lose the NASDAQ listing soon enough. Because of the fashion, the belief, that penny stocks are the home of fraudsters and manipulators it’s necessary to maintain the $1 minimum bid price on the exchange. As the CRKN stock price is mere pennies obviously they’re in breach - something must be done. That something is simply to declare that 60 old shares will now be one new one. A reverse stock split: “Crown Electrokinetics Corp. (CRKN) will effect a one-for-sixty (1-60) reverse split of its Common Stock. The reverse stock split will become effective on Tuesday, August 15, 2023.” That then solves that problem as the price should rise, mechanically, by 6,000%.
Crown ElectroKinetics stock price from Google Finance
That’s not the end though. As we’ve noted before about Crown ElectroKinetics: “Crown ElektroKinetics (NASDAQ: CRKN) does have a couple of nice products which are riding the fashionable wave right now. Of course, that's not enough to guarantee financial success but it's a good start to the idea. The company - or perhaps the tech itself - is a spin out from HP. they can make glass change colour really rapidly. Think like reactolite sunglasses but in mere seconds. One market for this sort of thing is fibreoptics, which as the internet continues to roll out is a nice market. The other is in office and commercial windows - their product there might go to market later this year
“OK, and there's this letter to shareholders where the CEO says he's very confident about how things are going to work out. Which is nice, given the 86% loss in the stock price in the last 12 months. Maybe this can be made back then? And so that's the 80% rise yesterday - that public announcement of confidence by the CEO.”
It’s even possible that the company is getting sorted out. There have been several orders for fibreoptics recently. But also at CRKN: “It is true that things are happening to CRKN stock but we tend to doubt they’re going to be all that value adding. For the next event is the annual general meeting, where they’re going to issue some more stock, then issue some more stock, then ask for permission to issue some more stock. Those three not usually known to be particularly value additive.” They need to recapitalise. So we’d not expect any consistent rise in the price just yet. Crown Ekectro might even come good, that’s certainly possible, but we’d think of them as a work in progress as yet.
