hhgregg (HGGG) Risk Analysis
Risk Overview Q4, 2016
Source: the company's latest filing for the period ended Dec 31, 2016, filed Jan 26, 2017
Risk Change Over Time
No filing history is available.
- Share Price & Shareholder Rights - Risk 1If we fail to comply with the continued listing requirements of the NYSE, our common stock may be subject to delisting.
We currently meet the continued listing standards of the New York Stock Exchange (NYSE). However, we cannot assure you that we will be able to continue to comply with the listing standards that we are required to meet to maintain a listing of our common stock on the NYSE, such as an average closing price of at least $1.00 and a minimum stockholders equity and market value of our listed securities of at least $50 million. Our common stock is currently trading at a price of less than $1.00 per share and our stockholders equity and market capitalization is below $50 million. If we fail to meet these standards for 30 consecutive trading days, we may receive a notice from the NYSE that we have failed to comply with the NYSE's listing standards. Our failure to continue to meet these requirements may result in our common stock being delisted from the NYSE. If we receive a deficiency notice, there can be no assurance that we will be able to regain compliance or that any appeal of a decision to delist our common stock would be successful. If the NYSE delists our common stock, we could face significant material adverse consequences, including (i) a limited availability of market quotations for our shares; (ii) reduced price and liquidity with respect to our shares which may materially limit your ability to sell shares of common stock; (iii) a determination that the common stock is a "penny stock" which will require brokers trading in our shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our shares; (iv) a limited amount of news and analyst coverage for our company; and (v) a decreased ability to issue additional securities or obtain additional financing in the future.
Risk Highlights Q4, 2016
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 20
- Share Price & Shareholder Rights - Risk 1AddedIf we fail to comply with the continued listing requirements of the NYSE, our common stock may be subject to delisting.
We currently meet the continued listing standards of the New York Stock Exchange (NYSE). However, we cannot assure you that we will be able to continue to comply with the listing standards that we are required to meet to maintain a listing of our common stock on the NYSE, such as an average closing price of at least $1.00 and a minimum stockholders equity and market value of our listed securities of at least $50 million. Our common stock is currently trading at a price of less than $1.00 per share and our stockholders equity and market capitalization is below $50 million. If we fail to meet these standards for 30 consecutive trading days, we may receive a notice from the NYSE that we have failed to comply with the NYSE's listing standards. Our failure to continue to meet these requirements may result in our common stock being delisted from the NYSE. If we receive a deficiency notice, there can be no assurance that we will be able to regain compliance or that any appeal of a decision to delist our common stock would be successful. If the NYSE delists our common stock, we could face significant material adverse consequences, including (i) a limited availability of market quotations for our shares; (ii) reduced price and liquidity with respect to our shares which may materially limit your ability to sell shares of common stock; (iii) a determination that the common stock is a "penny stock" which will require brokers trading in our shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our shares; (iv) a limited amount of news and analyst coverage for our company; and (v) a decreased ability to issue additional securities or obtain additional financing in the future.
- Share Price & Shareholder Rights - Risk 2We may fail to meet analyst expectations, which could cause the price of our stock to decline.
Our common stock is traded publicly and various securities analysts follow our financial results and issue reports on us. These reports include information about our historical financial results as well as the analysts' estimates of our future performance. The analysts' estimates are based upon their own independent opinions and can be different from our estimates or expectations. If our operating results are below the estimates or expectations of public market analysts and investors, our stock price could decline. If our stock price is volatile, we may become involved in litigation in the future. Any litigation could result in substantial costs and a diversion of management's attention and resources that are needed to successfully run our business.
- Share Price & Shareholder Rights - Risk 3Our executive officers, directors and stockholders affiliated with our directors own a large percentage of our voting common stock and could limit the influence of our other stockholders on corporate decisions.
Our executive officers, directors, current holders of more than 5% of our outstanding common stock and their respective affiliates beneficially own, in the aggregate, approximately 49.0% of our outstanding common stock. As a result, any person who acquires shares of our common stock will likely have little or no ability to influence control of the Company. The interests of these stockholders may not always coincide with our corporate interests or the interests of our other stockholders, and they may act in a manner with which our other stockholders may not agree or that may not be in the best interests of our other stockholders.
- Share Price & Shareholder Rights - Risk 4We have anti-takeover defense provisions in our certificate of incorporation and bylaws that may deter potential acquirers and depress the price of our common stock.
Our articles of incorporation and bylaws contain provisions that could have the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire, control of us. These provisions: - authorize our board of directors to issue "blank check" preferred stock and determine the powers, preferences and privileges of those shares without prior stockholder approval;- limit the calling of special meetings of stockholders;- impose a requirement that an affirmative vote of the holders of 66 2/3% of the outstanding shares of common stock is required to amend certain provisions of the articles of incorporation and bylaws;- the prohibition on action by written consent of shareholders as required by the Indiana Business Corporation Law, or the IBCL; and - the application of the Business Combination provisions of the IBCL. Because of these various provisions in our articles of incorporation and bylaws, a takeover attempt or third-party acquisition of us, including a takeover attempt that may result in a premium over the market price for shares of our common stock, could be delayed, deterred or prevented. In addition, these provisions may prevent the market price of our common stock from increasing in response to actual or rumored takeover attempts and may also prevent changes in our management. As a result, these anti-takeover and change of control provisions may limit the price investors are willing to pay in the future for shares of our common stock.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.
