Whats in the name - well, quite a lot!

Whats in the name - well, quite a lot!

What’s in a name? A lot, it can turn around when it comes to stock market.

Firstly, Zoom Technologies (ZOOM) and now Parle Industries (PARLEIND).

The U.S. Securities and Exchange Commission halted trading of Zoom Technology citing concerns of investors getting confused over the Stock Market with a Zoom Video Communication (ZM) which owns Zoom App that has been used for remote meeting services.

Due to increase of usage of its technology of remote services during the Pandemic amid Lockdown worldwide, the share of Zoom Video Communication surged from $ 68.04 as on 01st January 2020 to $221.58 as on 12th June 2020. A multifold increase in stock was seen. During the same time a penny stock named Zoom Technology surged from $ 4.018 as on 1st January 2020 to $20 as on 20th March 2020.

In India, after the Parle Products Private limited the owner of Parle G logged record sale of Parle G biscuits, preferred for mass consumption, during the period of lockdown. Also, its share in market has increased to 5%.

“This is one of the highest in the recent (time). At least in last 30 to 40 years, we have not seen this kind of growth”, officials stated.

Post announcement of highest sale a Company with a similar stock name as PARLEIND saw an increase in buying and resulted in stock hitting the upper circuits since last 3 days resulting in increase of share price from Rs. 17.7 to Rs. 20.15.

Investors should basically understand the business of the company rather than just following the name which may lead to confusion and then invest in the company. Details about listed companies are available on their websites as well as on BSE and NSE websites.

CA Shubham Chhajed

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