The notification that Enlightify (ENFY) will seek to cure its price‑deficiency problem is a clear catalyst for a short‑run shift in market micro‑structure.
Because the share price has hovered below the $1 NY‑exchange minimum for an extended period, the stock’s free‑float is modest and the order book has been thin, which has kept the bid‑ask spread relatively wide (often 5‑10 ¢ on a sub‑$1 ticker). The cure‑announcement removes the immediate threat of delisting, so market makers will be willing to post tighter quotes and replenish depth to avoid a forced liquidation of their inventory. In the next 1‑3 sessions we can therefore expect a modest compression of the spread—down to 2‑3 ¢ in many $0.70‑$0.90 trades—accompanied by a noticeable bump in quoted volume as short‑covering and speculative buying flow into the market.
From a liquidity standpoint, the spread tightening will be most evident in the midday “liquidity pool” where market‑maker‑generated trades dominate; order‑flow intensity should rise to the 1‑2 MM daily average shares (≈200‑400 k) as participants test whether the NYSE cure will be successful. However, the underlying fundamentals still flag a fragile price‑support level, so the extra liquidity is likely to be short‑lived and can evaporate quickly if the cure fails or if the price slips back below the $1 average again.
Actionable take‑aways
- Enter with a tight‑range, low‑risk position (e.g., buying at the tight‑mid‑bid) and protect the trade with a stop a few cents above the current ask; the narrowed spread makes a tighter stop feasible.
- Monitor the depth‑of‑market for a sudden widening of the ask side in the 30‑minute window after the NYSE filing—this would signal that market makers still anticipate delisting risk and could reignite a wider spread.
- If the spread remains narrow and volume holds, day‑traders can exploit the temporary lift in liquidity; otherwise, a retreat to the wider‑spread regime will re‑establish the usual low‑liquidity, high‑cost‑to‑trade environment.