Remember back in December, where it seemed any company could incorporate blockchain into its strategy or even into its name to and have its stock price soar?
Longfin Corp. debuted in December at just over $5 dollars, skyrocketed to over $70 in a few days and now is back just over $4.
My personal favorite was Long Island Iced Corp. changed its name to Long Blockchain Corp. and its ticker symbol to LBCC. The stock, which had been slumping from almost $5 in June 2017 to $2 in December. Then, after changing the name the stock soared to close at almost $7 and I believe traded above $10. That stock is at $0.38 as I type this note.
Eastman Kodak Company has done better than those stocks. It was down to almost $3 when they announced something about some sort of blockchain thingamajig and the stock popped to $10 reach a high, a week later, of almost $12. It is at $5.48 right now, so at least still above its pre-blockchain price.
Overstock.com Inc. has done the best in my opinion. It actually has some blockchain and crypto related business. Its stock had a longer rise, starting in August around $18 and getting to $45 by the end of October. It went on to hit almost $90 in January as the blockchain and crypto markets took off, and has since drifted back to $35. It has been trading in a range for a couple of months now. While far off its highs, it managed to retain most of its early gains, because it did have an actual strategy involving blockchain and crypto.
For those of us who were shocked by those price moves when they occurred, it does seem like the market can be rational – it might take time, but ultimately the market isn’t fooled by simple name changes like LTEA (though it is both headscratching and disappointing, to me, that it could be fooled as long as it was, for as much as it was).