CyberTech Rambler

August 23, 2007

Rubbish reason for changing SUN’s Nasdaq ticker

Filed under: Uncategorized — ctrambler @ 6:04 pm

SUN announced that it is changing its ticker from SUNW to JAVA. There is only one word I want to say and interestingly, it is the same word if one reverse the letters in SUN then add the letter ‘T” at the third location : NUTS!

First of all, a really important function that a ticker serves is to give you an idea which company the ticker belongs to. That is why it normally contains letters from the company name. Granted, it is not always extremely obvious, e.g. MSFT is Microsoft, but it does allow one to guess quickly. Nobody in their right minds (except SUN) will associate a ticker call JAVA with SUN. In fact, the rest of the world is more likely to match JAVA to a company, any company, selling coffee beans or coffee.

Moreover, Java may be the most recognizable brand name now for SUN, but SUN is bigger than JAVA. If we use this analogy, Microsoft should, God forbid, rename its ticker to WINW or something similar and Google should rename itself “SRCH”

This is an exercise that is going to cost money, confuse everyone and SUN ends up with a worse-off ticker name. Something like Royal Mail decided to call itself “Consignia”  a while ago.


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