SHG Value, page-11

If sgh shareprice falls to 0.01 jim its not a trigger to load up the truck. It indicates to most investors game over delisting is near.
Investors are often confused by company delisting and company failure. They are almost completely unrelated. The majority of companies are delisted for reasons other than failure such as takeover, merger, illiquidity, withdrawal because of listing costs etc.

Most company failures do not result in a delisting. Company failure lies behind many "changes of activity" where companies fail with one activity and formally adopt another. Sometimes a change of name reflects an attempt to disassociate from past failures. Both are classic cases of failure masked by events other than a delisting. The share price usually reflects these failures.

Many small companies fail and actually go into administration, where they are reconstructed and recapitalised. They later emerge with either the same name or a different name. Later there is hardly any sign of the failure. Only the shareholders concerned are painfully aware. Their capital has been savagely diluted and their shares are practically worthless.

Larger companies that fail such as Pasminco, HIH Insurance, ABC Learning, Babcock & Brown are of course eventually delisted.