Several industry analysts have predicted that a thinning of the herd is imminent within the oversaturated online insurance marketplace segment. If stock performance is a key indicator of a company's strength, this shakeout may be ready to commence.Two online marketplace providers in January faced the indignity of being delisted from the Nasdaq stock exchange for failing to maintain a minimum bid price of $1 for 30 consecutive days. Darien, Ill.-based Quotesmith.com Inc. and Atlanta-based Ebix.com were swept up in the Nasdaq delistment wave that has swelled to more than 200 since November.
If a company's stock trades below $1 for 30 days, Nasdaq sends a letter to the company, triggering the delisting process. A company then has 90 days to bring its stock price back up above $1, where it must remain for 10 consecutive days. If the price remains below $1 after 90 days, the listed company has seven days to request a hearing seeking an exception.
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