If you have been reading Stockerblog for several months, you have noticed that I have occasionally included stock market stock symbol trivia, where I ask what you think the company is that has a certain stock symbol, such as TAP, FUEL, CAKE, FACE, XRAY, SEED, PILL, etc.
But is having an interesting name, just that, interesting? Or is it possible value can be added to the stock by having a great stock symbol. Let's look at one example which is interesting trivia in itself.
For many years, the stock symbol for Harley Davidson (HOG) was HDI. However on August 15, 2006, the company changed its symbol to HOG, which is a term that is closely associated with Harley, and is also the abbreviation for the Harley Owners Group. If we look t the performance of the stock for the five month previous to the symbol change from May 15 to August 15, the stock was up only 14.7%; however for the five months subsequent to the stock symbol change, the stock was up 28.3%, almost double the return.
Author owns HOG.
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