While getting kicked off an exchange typically signals about the biggest warning sign you can possibly receive, a (somewhat) rational argument exists for delisted stocks to buy. Psychologically, companies go through much anxiety doing whatever they can to stay listed in a major exchange. Once booted, a certain clarity may materialize, leading to a recovery performance.
In some sense, delisted enterprises represent the bears biggest nightmare because such organizations don’t have “anything” to lose. Now, I say that in quotation marks because obviously, a corporation can completely implode and that certainly is something. To be 100% clear, delisted names represent speculative stocks. They can explode higher or they can crumble.
However, many troubled enterprises have relisted previously. In life and in Wall Street, redemption is not impossible to achieve. Sometimes, getting the boot is exactly that a company needs to kick into high gear. On that note, below are delisted stocks to buy for market gamblers.
two playing cards, an ace of spades and a king of spades, leaned against a stack of black and red poker chips. represents gambling stocks.
Source: shutterstock.com/Dugger94621
A nano-capitalization company to the extreme if there ever was one, Elys Game Technology (OTCMKTS:ELYS) can only muster a market cap of $5.55 million. Also, we’re talking about a price tag that sits at 15 cents per share. That’s going to trigger a heavy disclosure but I’ll just reinforce the warning right here: you do not want to spend any money here than you can afford to lose.
On Oct. 16 of this year, Elys announced that it received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC. Basically, the document stated that Elys shares would be suspended as of the opening of business on Oct. 17. It’s not without good reason. Since the start of the year, ELYS dropped over 43% of equity value. And since its initial public offering (IPO), it absolutely cratered.
However, the underlying sportsbook solutions and online casino software is incredibly relevant, especially with the debut of ESPN Bet. Given the broader enthusiasm of sports gambling, ELYS could be interesting as one of the delisted stocks to buy.
Oh yeah, ELYS carries a moderate buy consensus view with a $1 price target.
Enthusiast Gaming (EGLXF)
Woman in VR glasses and man sitting at computer and creating graphics of modern video game.
Source: Shutterstock
A Canadian digital media firm, Enthusiast Gaming (OTCMKTS:EGLXF) specializes in video game journalism. Because of the ever-rising interest in video games, Enthusiast Gaming should be a banger among speculative stocks. However, since the beginning of the year, EGLXF gave up more than 58% of equity value. In the trailing 52 weeks, it’s down almost 71%. Yikes.
Adding to the dilemma is that EGLXF trades for only 23 cents per share. On Oct. 27, the Chicago Board Options Exchange broadcasted a notice that Enthusiast shares will be delisted from the Nasdaq exchange. Subsequently, the ticker symbol changed from EGLX to EGLXF as it transitioned to the over-the-counter market. Nevertheless, an argument can be made that it’s one of the delisted stocks to buy.
As Grand View Research stated, the global video game market size reached a valuation of over $217 billion last year. Further, experts project that the sector will expand at a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030. At the culmination of this forecast, the segment should hit revenue of $583.69 billion.
Enticingly, analysts peg shares a unanimous strong buy with a $1.71 price target.
Eloxx Pharmaceuticals (ELOX)
Illustration of a biopharma company. Doctor standing in front of various medical icons.
Source: Billion Photos / Shutterstock
Another example of an extreme nano-cap play, Eloxx Pharmaceuticals (OTCMKTS:ELOX) received the bad news on Oct. 12. On that day, the biopharma received a determination letter from the Listing Qualifications Department of Nasdaq that its shares will be suspended from the exchange. Primarily, the company failed to meet the requirement that enterprises carry at least a minimum market value of $35 million.
What is it at the moment? A whopping $3.46 million. So yeah, the boot practically represented an inevitability. Also, there’s the matter of ELOX losing about 57% of its equity value since the beginning of the year. For what it’s worth, ELOX presently trades at $1.10 per share. Still, this status could come under pressure unless the company regains bullish momentum.
For the patient (and daring), ELOX could nevertheless be one of the delisted stocks to buy. Specializing in small molecule gene therapy, Eloxx seeks to address defects leading to genetic diseases and ribosomal mutations driving cancer. On a broader level, Precedence Research states that the global cell and gene therapy market reached a valuation of $15.46 billion last year.
Further, the segment may experience a CAGR of 18.3% to 2032, culminating in revenue of $82.24 billion. Oppenheimer also sees a gargantuan $30 price target on ELOX.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
