The regulatory arm of the New York Stock Exchange late Friday recommended delisting the stock of TOUSA, Inc. (NYSE:TOA) from the NYSE.

The recommendation from NYSE Regulation, Inc. was made after the disclosure by TOUSA earlier last week that the company is uncertain whether it can continue "as a going concern." Trading in the stock had already been suspended from the exchange and moved to the so-called Pink Sheets, where it was trading at $0.14 per share by late morning Monday. According to NYSE Regulation, the suspension was taken in light of "abnormally low" trading level of the common stock, which closed at $0.12 on November 15, 2007, with a resultant market capitalization of $7.2 million.

"Furthermore, we noted that the company has now also fallen below the NYSE's continued listing standard for average market capitalization less than $75 million over a consecutive 30 trading day period and stockholders' equity of $75 million based on its recently reported results for the quarter ended September 30, 2007," NYSE Regulation said in a release. Trading in NYSE-listed TOUSA securitized debt also has been suspended.

The final decision whether to permanently delist the stock from the NYSE rests with the Securities and Exchange Commission.

TOUSA has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. "Once a company falls below standards, we immediately contact the company and tell them they are in danger of de-listing," said Scott Peterson, managing director of communications, NYSE Regulation. "The NYSE has what we refer to as a 'cure period.'"

Being removed from an exchange is not always a patient and orderly process. "Despite all the [steps], we do reserve the right to de-list a company at any time," said Peterson. "If it is clear that a company is just not going to make it, we have de-listed companies, basically on the spot."

Case in point: New Century Financial Corp., a mortgage REIT, was suspended in March when it was considered "no longer suitable for trading in light of disclosure about severe liquidity issues."

Through the end of the third quarter, the NYSE had revoked listings on a total of 16 securities in 2007.