K-Tel on last legs ... again

The Phoenix of tech stocks may finally be laid to rest. K-Tel International Inc. (Nasdaq:KTEL) fell 33 percent Wednesday after it announced it may be delisted from the Nasdaq.

Shares in the distributor of entertainment and consumer products were down 1 17/32 to 2 15/32, or 33 percent.

K-Tel said it has been advised by Nasdaq that it no longer meets the minimum $50 million market capitalization or total assets and total revenue requirements for continued listing.

"This letter is the first step in a process," said CEO Philip Kives in a company statement. The company is currently under review by the Nasdaq staff.

If all this sounds familiar, that's because it is.

K-Tel has been through the Nasdaq dance before. In late 1998, K-Tel failed to meet Nasdaq requirements, but rose from the ashes when it met the exchange's benchmarks after employees exercised options.

K-Tel, however, couldn't maintain the gains. K-Tel did get a nice pop last November when the hailed a first-quarter loss as a "return to profitability."

The company's competitors include CDNow (Nasdaq: CDNW) and Universal Music Group according to Hoover's Online.