Every dog will have its day.
Over one-tenth of what was known as the enigma network had changed its trading name in the last nine months in attempt to turn a new page, according to Apple Daily.
Among the 120 listed firms that sought to change their name, five of them were on the list of 50 stocks that corporate activist David Webb had urged investors to stay away from.
They include Jun Yang Financial Holdings (stock code: 0397), which said it wants to change its name to Power Financial Group; DX.com (8086), whose name changed to Sino Vision Worldwide Holdings; Jia Meng Holdings (8101), which sought a new identity as EJE (Hong Kong) Holdings; and Rui Kang Pharmaceutical Group Investments (8037), whose name changed to China Biotech Services Holdings.
As for Convoy Global, the center of the enigma network, it is still trying to survive after a boardroom arrest, so a new name might definitely help.
Overall, we’ve seen that most such firms generally fail to succeed in their objectives in the longer term after a name change.
Still, it won’t prevent more companies, especially the small-cap entities, from following suit as they try all sorts of tricks in a desperate bid to woo investors.
Fintech, biotech and sharing economy are the buzz words. Even Belt and Road initiative helps. In fact, at least four companies carried the name of Silk Road, betting that China’s national strategy of Going West might work in their favor one day.
Bitcoin or other cryptocurrency-related theme may also sell. Six weeks ago, Long Island Iced Tea Corp surged almost two-fold after it proposed to changes its name to Long Blockchain Corp.
Six weeks later, the blockchain effect diminished and the stock came down to a level that marked just about 20 percent appreciation compared to where it was before the change.
Right now, some people may be thinking that the Year of Dog would breathe new life to the so-called dog stocks – those with high dividend yields but low PE multiples.
Such hopes are understandable, but don’t be too sure about anything yet, especially after the big slide recently that sent some fancied blue-chip names into a tailspin.
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