Basic Energy Services, Inc (NYSE:BAS) was off to a relatively normal start in the market today. While the stock was in the green for most of the day, the gains were nothing special. However, as the morning progressed, that started to change, with the stock skyrocketing to big gains. Below, we’ll talk about what we’re seeing from the stock, why, and what to watch for with regard to BAS ahead.
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What We’re Seeing From BAS
As mentioned above, Basic Energy Services, Inc (NYSE:BAS) was off to a relatively normal day in the market today. While the stock was in the green for the most part, gains weren’t anything to write home about. However, as the morning progressed, we started to see that the slow, yet steady upward movement was actually leading to some pretty big gains. At the moment (1:58), BAS is trading at $0.45 per share after a gain of $0.13 per share or 40.54% thus far today.
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Why The Stock Is Climbing
As soon as I noticed that the relatively small gains on BAS had actually turned into something impressive, I decided to start digging. At the end of the day, I wanted to know what exactly was causing the movement on the stock. It didn’t take long to dig something up.
Back on August 19th, 2016, Basic Energy Services took a big hit. On that day, the company was served a notice of non-compliance from the New York Stock Exchange. Unfortunately, the company’s share price had fallen below a key listing standard. In order to maintain its listing, the company needed to maintain a minimum thirty-day average trading price of $1.00 per share.
Nonetheless, today, the company finally received good news from the NYSE. According to a release, the New York Stock Exchange has accepted the company’s plan for continued listing. As a result, the company will maintain its listing on the NYSE while the exchange continues to monitor the company.
What We Should Be Watching For Ahead
In order to maintain listing on the New York Stock Exchange, BAS has to get its price up to $1.00 per share. While we haven’t been told what the company plans on doing to achieve this, the most probable option seems to be a reverse stock split. If this indeed is the case, shortly after the split, the stock will likely fall, as these tend to scare investors. Nonetheless, keep a close eye out for clues as to how Basic Energy Services, Inc (NYSE:BAS) plans on getting its price up to the $1.00 per share mark. Their plans could lead to big movement ahead.
Follow Basic Energy Services Inc. (NYSE:BASX)
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About the Author: Josh Rodriguez
Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.
