Fred’s, Inc. (NASDAQ:FRED) stock to be delisted starting Wednesday

Fred’s, Inc. (NASDAQ:FRED) stock to be delisted starting Wednesday

Fred’s, Inc. (NASDAQ:FRED) stock to be delisted starting Wednesday

Fred’s common stock is set to be delisted from the Nasdaq market exchange beginning Wednesday, Sept. 18. 

The stock may be eligible for listing on the over-the-counter Pink Sheets, with a Q in the ticker symbol indicating the company is in bankruptcy. 

Fred’s also filed a notice with the Tennessee Department of Labor and Workforce Development late last week that it will lay off 90 workers in Shelby County.

Those workers, currently in the Lenox Park office complex in the 385 Corridor, will be permanently laid off between Nov. 9-23. 

The delisting is one of several items outlined in a Sept. 13 8-K filing with the Securities and Exchange Commission that includes deadlines for various activities required by the company’s Chapter 11 bankruptcy filing. 

The Bankruptcy Court has approved an interim Debtor-In-Possession Credit Agreement between Fred’s and its lenders, Regions Bank and Bank of America N.A., according to the 8-K.

Fred’s is required to pay “an unused line fee of 0.5% per annum (payable monthly in arrears) on the average daily unused portion of a DIP Loan Commitment and certain other fees to the DIP Agent under the agreement.

In addition, Fred’s is required to meet certain milestones in the coming weeks as a result of its Chapter 11 filing, including:

  • Entry of the of the Bankruptcy Court’s final order, in form and substance acceptable to the DIP Lenders and the DIP Agent, approving the DIP Facility no later than Oct. 15, 2019
  • Completion of ongoing out of business sales by Oct. 30
  • Entry of an order approving pharmacy scripts and pharmacy inventory sale procedures no later than Sept. 23
  • Completion of the pharmacy scripts and pharmacy inventory sales no later than Oct. 18
  • Entry of an order approving real estate sale procedures no later than Oct. 7
  • Holding an auction for real estate sales no later than Oct. 17
  • Completion of the real estate sales on or before Nov. 15.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 0.35.

The projected upper bound is: 0.20.

The projected lower bound is: 0.05.

The projected closing price is: 0.12.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 17 white candles and 32 black candles for a net of 15 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.5650. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 21.92. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 56 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -77. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Rex Takasugi – TD Profile

FREDS COMMON ORD closed up 0.005 at 0.132. Volume was 70% above average (neutral) and Bollinger Bands were 31% narrower than normal.

Open     High      Low     Close     Volume___
0.132 0.148 0.127 0.132 1,694,215
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 0.18 0.32 1.51
Volatility: 398 202 179
Volume: 3,428,219 923,349 793,931

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FREDS COMMON ORD is currently 91.2% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of FRED.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FRED.O and have had this outlook for the last 38 periods. Our momentum oscillator is currently indicating that FRED.O is currently in an oversold condition.

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