Whoops! Stocks with Oculus name spikeMarch 26, 2014: 4:05 PM ET
Shakespeare pondered whether a rose by any other name is as sweet. Apparently, that may be the case for stocks.
On Wednesday, a day after Facebook announced its planned acquisition of Oculus VR for $2 billion, trading of penny stock Oculus VisionTech (OVTZ) was halted after surging almost 90% in half an hour. The Vancouver-based digital media company bears no connection to Facebook's acquisition target, but that didn't stop investors from riding the Oculus name wave.
"It would have been nice, but it's definitively a misunderstanding," said Tony Drescher, Director and Chief Financial Officer of Oculus VisionTech. "We're not in the virtual reality business."
Drescher said that it was the company's decision to suspend trading.
The stock opened at 18 cents per share, doubling to 36 cents before being halted at 30 cents, according to FactSet. Trading commenced again just before noon, and the stock finished the day down 12.5%.
Another stock with a similar name also saw a bump, albeit a more modest one. Oculus Innovative Sciences (OCLS), a biotechnology company, jumped 8% in early trading before closing with a 5.5% gain.
Reaction on StockTwits was plentiful and playful.
Still, Oculus Innovative Sciences was holding its ground even after the initial , as noted by StockTwits trader adatherton.
"This $OCLS thing isn't stopping, even though everyone must have realized it by now," he said.
The OCLS stock is still up around 6% as of noon. Too bad King Digital Entertainment (KING), the maker of Candy Crush, wasn't named Oculus today.