Why do small caps keep changing their names?

[OmegaTrader]

Looking at a lot of small caps and they seem to have name changes left right and centre.

Is this due to trying to get new investors????

 

[Tightwad]

i don't see the point at times, bentham imf became imf bentham or vice versa... eml went from emerchants to eml payments ltd.. slightly more descriptive but really the differences are trivial

 

[OmegaTrader]

i don't see the point at times, bentham imf became imf bentham or vice versa... eml went from emerchants to eml payments ltd.. slightly more descriptive but really the differences are trivial

Yeah there is that type which is benign.

But I am talking about a company changing its name to something completely different.

I think it is to get greater fools on board....

I noticed alot of small caps follow the same cycle.

Boom, die, name change,
Boom, die, name change

 

[skc]

Yeah there is that type which is benign.

But I am talking about a company changing its name to something completely different.

I think it is to get greater fools on board....

I noticed alot of small caps follow the same cycle.

Boom, die, name change,
Boom, die, name change

Are you talking about those tiny shells that gets backdoored into?

http://www.investopedia.com/ask/answers/08/back-door-listing.asp

 

[OmegaTrader]

Are you talking about those tiny shells that gets backdoored into?

http://www.investopedia.com/ask/answers/08/back-door-listing.asp

I don't know if that is the reason.It just seems odd that the names keep changing.

I will give you an example. I was looking for a high volatility stock.

So the code Cardio Bioplastics CNN comes up on ASXIQ

Now you search the name and it is changed to SECOS Group Ltd
Now before that the name was Cardia Technologies Limited
and before that Cardia Mining NL.

So here is the History

So the company was listed around 1997 mark (I think) and also established a joint venture with University of Queensland.

https://www.uq.edu.au/news/article/...-project-advances-mine-remediation-technology

Then the name gets changed to Cardia Technologies Limited in 1999

Ok understandable,

Then in 2009 name changed to Cardia Bioplastics Limited.

Then in 2012 lo and behold a capital raising.

2015 name changed to SECOS GROUP LTD, during a share consolidation.

Here is the chart pattern I keep seeing

Boom and bust.



I am not saying anything wrong is going on.

But this is my hypothesis.

Start up a company and advertise.

Get excited investors

The company stagnates, name change and capital raising.

To get new investors and re-brand.

Stagnates again, name change and consolidation/ raising.

To get new investors.

So the question is

1) what is the purpose of the name changes?
2) where is the money going?
3) Who is benefiting?

Bureaucracy within the company could be?


My opinions only as a amateur armchair investor. Not advice.

cheers

 

[So_Cynical]

So the question is

1) what is the purpose of the name changes?
2) where is the money going?
3) Who is benefiting?

As SKC said, many of the name changes over the last 2 years have been backdoor listings (reverse takeovers) guessing that over the last 2 years more than half the total name changes were as a result of this, vast majority of RTO are new businesses taking over so new direction equals change of name etc.

RTO's are a lot cheaper than a new listing (IPO) so actually cheaper for shareholders old and new, the money goes to compliance, fees, management and advisers as per usual.

 

[OmegaTrader]

Are you talking about those tiny shells that gets backdoored into?

http://www.investopedia.com/ask/answers/08/back-door-listing.asp

As SKC said, many of the name changes over the last 2 years have been backdoor listings (reverse takeovers) guessing that over the last 2 years more than half the total name changes were as a result of this, vast majority of RTO are new businesses taking over so new direction equals change of name etc.

RTO's are a lot cheaper than a new listing (IPO) so actually cheaper for shareholders old and new, the money goes to compliance, fees, management and advisers as per usual.

Thank you

It's starting to make more sense now.