Coldwater Creek going through turbulent times

ANALYSIS_ Earlier in January, the US-based women's retailer received a warning from Nasdaq authorities: it could lose its spot on the stock exchange unless it raises its share price to 1 dollar for 10 consecutive days. It has 180 days, or until July 1, to meet that requirement.

The company filed a notice Wednesday saying it had received a letter Jan. 2 from the Nasdaq Stock Market, which requires companies to have closing prices of at least 1 dollar over 30 consecutive business days to stay listed.

"Delisting

could have a material adverse effect on the price of the company's shares and the company's ability to issue additional securities or secure financing," Coldwater Creek said in a filing to the Securities and Exchange Commission. The company further explained that its stock could be traded instead on over-the-counter markets, on an electronic bulletin board.

Coldwater Creek's stock has shredded almost 77 percent on the year, giving it a market cap of nearly 28 million dollars.

Coldwater Creek looking for financial aid

This issue adds to the retailer's struggle to find a buyer for the business. Given its current circumstances, Coldwater Creek has decided to seek additional financing for the company, according to a source familiar with the situation, reported the 'Wall Street Journal' Tuesday.

Since the fashion retailer hired investment bank Perella Weinberg Partners to conduct a strategic review in October, Coldwater Creek has been in everyone's mouth as a potential subject to private equity's takeover.

Upgraded rating helps the stock

On the upside, Coldwater Creek (NASDAQ:CWTR) was recently upgraded by analysts at Thomson Reuters/Verus from a "sell" rating to a "hold" rating in a report.

On the positive rating, shares of Coldwater Creek (NASDAQ:CWTR) traded up 10.14 percent on January, 27, hitting 0.815 dollars. That prices compares to the stock's 52 week low of 0.65 dollars and a 52 week high of 4.07 dollars.

Coldwater Creek (NASDAQ:CWTR) last released its earnings data on December, 11. The company reported 0.79 dollars earnings per share (EPS) for the quarter, beating the Thomson Reuters consensus estimate of 0.89 dollars. The company had revenue of 154.50 million dollars for the quarter, compared to the consensus estimate of 160.06 million dollars.