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Shares drop hits recall ravaged Rock Shox

The US stock shufflers Nasdaq, have de-listed RockShox’s stock because it has been trading below the Nasdaq’s required $1 minimum. Brian Kelln, RockShox’s president commented “It certainly is a disappointment. We have been put on notice for the past 18 months as our stock price went up and down. But at our last hearing with the board the decision to de-list was made,” said . The shares will now be listed on the Over The Counter Bulletin Board (OTCBB), but can be restored to the Nasdaq if they can prove the price has stabilised above the $1 threshold.

However this news comes as Rock Shox is facing several other big problems. The relocation to Colorado springs has caused some problems, but the biggest problem has been caused by manufacturing outsourced to Spinner in Taiwan. Somehow the US Spec. drawings were mis-read resulting in the compression rod on several fork models being made from plastic rather than metal. the resulting fork collapses have forced a massive recall on budget Judy, Jett and Metro forks.
This means covering the costs of all new components being air freighted out to the suppliers / bike companies and distributors / shops worldwide who are stuck with thousands of unsaleable bikes, then labour costs to cover the complete strip and refit of bikes (mostly boxed pre delivery) plus any possible litigation that might arise from those already injured. Factor in all the damage it’s doing to the reputation of their unaffected forks and their reputation as a supplier and it’s looking very grim for Rock Shox.

A big dissapointment when their product line up was the strongest for years thanks primarily to the new Psylo long travel air fork.

 

 

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