Is it TWTR or TWTRQ? Investors confuse bankrupt Tweeter with Twitter, sends stock soaring
Tweeter Home Entertainment was a little-known, Boston-based electronics retail company that went bankrupt and liquidated roughly 5 years ago, yet its stock market shares came back from the grave this morning and sky rocketed by more than 1,800 per cent.
The company's success was short lived, though, as its stock was halted at 12:42 PM EST. Why, you may ask? It seems investors confused it with Twitter. Yes, we're serious.
Twitter revealed yesterday its initial public offering of stock and TWTR ticker symbol. The IPO isn’t expected to go into effect until November, which scores of media headlines and official filings dutifully detailed, but many investors somehow mistakingly purchased shares of TWTRQ thinking it was actually Twitter's TWTR.
Tweeter once specialised in selling TVs, car audio systems and home theaters in more than 100 US stores prior to filing for Chapter 11 bankruptsy in 2007 and liquidating just one year later. That's certainly a far cry from what Twitter offers as a social media giant. Still, some people apparently mixed up the two.
The OTC Bulletin Board promptly updated with the following statement once Tweeter's stock was halted on Friday: “Trading is halted because FINRA has determined that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace or significant uncertainty in the settlement and clearance process."
TWTRQ's 52-week low this year was $0.0004, but its current price is at $0.105. Not bad for a dead company, eh?