Mullen Automotive (NASDAQ:MULN) stock avoided getting delisted when it failed to meet Nasdaq’s dollar bid requirement; will MULN stock reach $1 before its new September deadline?
Nasdaq approved a 180-day extension for Mullen Automotive to meet the minimum $1 bid price per share.
On Sept. 7, 2022, Nasdaq provided notice to the Company that, based on the previous 30 consecutive business days, the Company’s listed common stock no longer met the minimum $1 bid price per share requirement as set forth in Nasdaq Listing Rule.
The Company was provided 180 calendar days, or until March 6, 2023, to regain compliance.
If Mullen stock fails to trade above $1 for a minimum of 10 consecutive business days prior to Sept. 5, 2023, the Company will implement a reverse stock split to cure the Deficiency prior to the expiration of the additional 180-day compliance period.
MULN shares dropped below $0.20 on Thursday, currently trading around $0.18 per share.
The stock is now down -41% after analysts gave the company a +7,000% prediction for 2023.
This was around the time MULN stock was trading at $0.32 — giving Mullen Automotive a price target of $24.
Despite positive developments in the company, Mullen’s share price continues to plunge.
Shareholders say Mullen Automotive may have become a target to naked short selling.
Are Investors Still Bullish on MULN Stock?
Yet another reason why investors believe MULN stock is being naked shorted, all signs still point towards bullish sentiment — buyers still outweigh sellers.
For the entire year, we’ve seen the call options volume distribution lean heavily more towards calls, and indication investors are betting on the stock to rise.
And although volume has recently come down from earlier this year, call options continue to dominate put options in the derivatives market.
Investors are clearly bullish on MULN stock despite the massive price decline in the past months.
On Thursday, we’re seeing calls volume outweigh put options by more than 19K in volume.
In the past we’ve seen hundreds of thousands of call option volume outweighing put option orders.
New buyers of the stock have also recently come into the market.
MULN isn’t as heavily shorted as AMC or other retail favorites, yet it’s price seems to be getting suppressed like these other ‘meme stocks’.
Will MULN Stock Reach $1?
Something we’ve seen in earlier this year is that heavy buying pressure has been able to move the stock up — all it’s going to take for MULN stock to reach $1 is enough buying momentum from retail investors.
But many shareholders liquidity pool has also begun to dry up, with many being long-term buyers who are deep in unrealized losses.
However, new investors may be able to profit on a move from current levels up to $1 per share.
Here’s a statement from Mullen Automotive’s CEO in regard to the company stock reaching $1 per share.
“Consistent with my message to our shareholders, we will use our best efforts to regain compliance to meet Nasdaq’s requirement for a $1 minimum bid price,” said David Michery, CEO and chairman of Mullen Automotive.
Will you be buying MULN stock in efforts to capitalize on a price surge to $1?
Or are you simply holding and hoping for the best?
Leave your thoughts in the comment section below.
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