NEST Stock Up 1000%+ on Mistaken Identity

[Gilberto de Piento]

An interesting story:
http://dealbook.nytimes.com/2014/01/15/ ... ring/?_r=0

"Nestor Inc. is a defunct shell of a company that once sold automated traffic enforcement equipment to state and local governments. Based in Providence, R.I., the company went into receivership in 2009, and all of its assets have been sold.

Its shares, which are not listed on any exchange, have been dormant for years, worth less than a penny each.

But on Tuesday, the stock woke suddenly from its long slumber to begin trading at one penny, jumping to a high of 10 cents a share. After a volatile day of trading, it closed at 4 cents.

So, what happened? The price movement may be a case of mistaken identity stemming from an acquisition announced this week.

Google said on Monday it had agreed to buy Nest Labs, which makes Internet-connected devices like thermostats and smoke alarms, for $3.2 billion in cash. Nest Labs is a private company based in Palo Alto, Calif.

After the deal was announced, investors rushed to buy shares of Nestor, apparently confused by the company’s ticker symbol, NEST. The stock continued trading on Wednesday, settling at about 4 cents a share by midday."

[Ian]

This isn't the first time. I wonder if there's anyone trying to make their fortune by investing in whatever stocks sound like the tech news of the day and then dumping them as soon as they rise.

[ICouldBeTheWalrus]

I recall a similar thing happening when Twitter IPOed. There was some confusion with this failed retailer: https://en.wikipedia.org/wiki/Tweeter_(store)

[Chad]

Some lucky bastard probably stumbled onto this as it was happening and shorted it at $.10.