Allied Irish Banks plc (NYSE: AIB) is one that flew under the radar last week because of the floodgates of earnings reports. Last night the company issued an update to its sale process of its operations inside the United Kingdom that was not exactly a resounding endorsement. While shares are indicated higher this morning, Allied Irish Banks has been flirting with true penny stock territory.
Last night it commented about recent press comments in relation to the sale of its UK business. It noted, “In light of current market conditions, progress in relation to the disposal of that business has been challenging. The Company continues to keep the sale process under review and will update the market in due course.” In short, no deal seems imminent even if it is still in the game.
Shares closed at $1.00 per share yesterday to avoid a true penny stock status. The stock has not yet closed under the $1.00 mark either. What has been impossible to ignore is that prints have been coming in as low as $0.98 and $0.99 in the last three consecutive trading sessions. If there is an awful market day it is feasible that Allied Irish Banks will formally be a penny stock.
Technically, many investors treat stocks under $5.00 or under $3.00 as penny stocks and many brokerage accounts do not allow those stocks to be bought (or sold) on margin.
Stay tuned.
JON C. OGG
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