ShiftPixy (NASDAQ: PIXY) stock should jump 2,400% at the open. PIXY stock is not jumping 24x because they’ve suddenly worked out how to make money out of their restaurant staffing app. Nor any other business line in fact. Instead this is a purely technical, even nominal, price change to deal with a specific stock market problem. It’s also something that should have happened two weeks ago but has been delayed for some reason.
As we’ve said before about ShiftPixy: “We’ve looked before at Shiftpixy: “ShiftPixy (NASDAQ: PIXY) is a stock that's been around for a bit. It's also a company that hasn't been - so far at least - able to capitalise upon its opportunities. As was pointed out elsewhere: “ShiftPixy itself is one of those ideas that might have come off but it appears that it didn't. It's an app and system aiding gig work in the restaurant world. Sure, we all know about gig work and Deliveroo and Uber, and the rest. But restaurant work does have quite a flow of staff through jobs over time. There are large changes in demand so flexibility in the workforce both happens and is desired. We can imagine that restauranteurs might be keen to sign up to a system that offers a pool of workers than can be matched to that changing demand.” Well, yes, OK, that could have happened but it didn't. So, bad idea then. There was also that spin off of AXH on the grounds that not to do so might leave PIXY classified as an investment company.””
ShiftPixy stock price from Google Finance
The problem being solved before we’ve also discussed before. There’s a technical problem for PIXY stock: “As to why this exercise, that’s fashion, or perhaps culture. The New York markets think that penny stocks are somehow disreputable. It’s not that all penny stocks are run by fraudsters, far from it. But it is true that when there are frauds going on they tend to be in penny stocks. So, there’s an insistence that as a long term - over 18 months or so - penny stock you lose the Nasdaq or NYSE quote and get relegated to the OTC. This means a loss of liquidity and makes raising more capital hugely more expensive. There is a solution to this. Simply declare that 24 old shares will now become one new one - a one for 24 reverse stock split: “to effect a one-for-twenty-four (1:24) reverse split of the Company’s issued and outstanding shares of Common Stock, as further detailed in the Company’s definitive Schedule 14C Information Statement filed on September 1, 2023, Articles of Amendment of the Company’s Amended and Restated Articles of Incorporation will become effective as filed with the Secretary of State of Wyoming. The new reversed shares will begin trading on Nasdaq on October 2, 2023.””
The only thing that’s changed since that last report is the effective date: “ShiftPixy, Inc. (PIXY) will effect a one-for-twenty four (1-24) reverse split of its Common Stock. The reverse stock split will become effective on Monday, October 16, 2023.”
Quite why the date change isn’t clear but that’s all it is.
