XELA might be exiled from listing— Can prices survive the fall?

NASDAQ staff determined to delist the securities.
New partnership signed, aims to prevent the collapse.
Prices fell by nearly 10%.

Exela Technology (NASDAQ: XELA) is a company that provides transaction processing solutions, enterprise info management and digital business process services. Its segments included Information and Transaction Processing Solutions (ITPS), which is a range of solutions and services designed to aid business and industries.

Recently, the listing qualification staff of NASDAQ determined to delist the securities of the company from the stock exchange. The stock prices, which were already in the downtrend, were further pushed to fall by face. Although it’s unconfirmed, many believe the company lacks the potential to match the pace of evolution in the tech industry.

The company came up with many mergers and expansions, but it didn’t seem to work as the share prices fell indiscriminately. Starting from Sept 2022, Exela added ClearBanks to its platform, then it announced dividends on the preferred stock. It also came up with a new logo, followed by the expansion in relationship with healthcare member engagement leaders. In the month of October, it came up with the new digital mailroom, and then went public through a merger with CF Acquisition Corp. VIII.

Despite all the effort the prices continued to fall as the holders and the customers were dissatisfied with the company’s performance. Recently, to act upon the delisting proposal, Exela Technologies signed a strategic partnership with Quintes Global. The aim is to deploy its cloud-based Robotic Process Automation solution.

How did prices bear the hit?

The XELA stock prices were influenced by the downtrend for months. The current price of $0.0745, is near the all-time low. Since mid-September, the prices have fallen by more than 90%. The volume displays flourishing selling emotions among the investors of XELA. The 20-EMA lies close to the current trading price range.

The RSI shows sellers pulling the market to their side as they dominate the market. The indicator is close to the oversold zone, and may enter the range anytime soon. The MACD reflects a few buyers facing a tough competition from the sellers and planning to vacate the market, by booking profits.

The holders fear that XELA securities might get delisted and the company may collapse. According to the analysis, the mergers and alliances have led to massive outflows, but no such return is received till date. The holders and investors fear the funds are not optimally utilized and can go in vain.

The financial reports disclose that the company’s P/E ratio is -0.03 whereas the industry holds the ratio of 30.30. The return ratios stand at nil alongside the positive figures of the industry. These figures paint a gloomy picture for Exela Technologies and are scaring the holders away.

Conclusion

The IT market is aiming to reach $1.3 trillion by 2026, according to the Mordor Intelligence report, 2020. With incompetent companies like Exela Technology, the industry might face hurdles in the way. The company has drained huge funds leading to no returns and leaves the company in disdain. The holders may desert the market soon.

Technical levels

Support levels: $0.49 and $0.20

Resistance levels: $0.55 and $0.85

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing