Midway‘s stock has fallen 40 percent since Monday, with shares trading for as low as $.23.
The rapid decline follows in the wake of Monday’s sale by Summer Redstone of a majority stake in the troubled company’s stocks for a paltry $100,000 ($.0012 per share) to investor Mark Thomas. Stock has been dropping regularly over the week – on Monday it reached a peak of $.38 but since has dropped as low as $.18 at times.
Shareholders are obviously rattled after the liquidation of the majority share on Monday, and there isn’t much silver lining for them, either. Redstone will receive a large tax benefit for the sale of the stock which will go to ease the burden of the companies $1.6 billion debt, but time will tell how things play in the long run. For now, Midway must deal with the threat of being delisted from the New York Stock Exchange for failing to trade above one dollar for 30 days.
Since Midway’s hurting so bad, might they be wise to take some of our advice for how to save themselves from financial ruin?