TallSkott and I Have Been Doing This For Years

Companies get cute, namely with ticker symbols

Shakespeare asked "what's in a name?" but some investors are pondering what's in a ticker symbol.
Motorcycle maker Harley-Davidson started trading by its new stock symbol "HOG" Tuesday, dropping its more pedestrian previous symbol: HDI.
The new symbol celebrates the term HOG, a common nickname for the chrome-covered motorcycles and an acronym for a million-member-strong owners club, Harley Owners Group, that the company formed in 1983.
Other companies have also used stock symbols to:

•Stick in investors' heads. Cedar Fair, which runs several amusement parks, decided to be FUN when going public 1987, says spokeswoman Stacy Frole. "It's easy to remember," she says. "Being in amusement parks, we're in the business of providing fun."

Investors might not associate Premium Standard Farms' name with pork, but the symbol PORK is a big giveaway. Olympic Steel could have just been another steel company and trade by OLYM, but instead, it played with the Olympic theme and opted for ZEUS when it went public in 1994, says spokeswoman Jill Lettl.

•Broadcast the company's culture. Southwest Airlines' symbol, LUV, harkens back to 1975 when the airline's shares first traded, says spokeswoman Beth Harbin. A love theme permeated every aspect of the company, she says, ranging from snacks called love potions and love bites to "attractive flight attendants with short skirts," she says. "Love was incorporated into our culture."

•Reinforce the company's brand or business. Anheuser-Busch promotes is beer with its symbol: BUD. "BUD was the obvious choice for a crisp, clean and refreshing ticker symbol," says CFO W. Randolph Baker in an e-mailed response.

Symbols can also highlight a company's industry. VCA Antech, an animal health care provider, barks by the symbol WOOF (my personal favorite); shoe seller Shoe Pavilion trades by SHOE; Pizza Hut holding company Yum Brands is YUM; Chili's operator Brinkers is EAT; and satellite TV company EchoStar is DISH.

A clever symbol may be fun, but it won't influence investors, says Hugh Johnson of Johnson Illington Advisors. "It's interesting. It's entertaining. But not much more than that," he says.

Being too cute with symbols can backfire. Mary Magnani of video game maker Majesco wishes the company never changed its symbol from MJES to COOL in April 2005. The stock has fallen 85% since, and the symbol is an easy joke for investors and analysts. "The name has come back to haunt us," Magnani says.