Investors confuse defunct electronics chain Tweeter with Twitter
Call it the Twitter bounce.
Shares of the defunct consumer electronics retailer Tweeter, which once had a store in the Charleston region, got a big jolt Friday after investors mistook it for Twitter.
The mix-up unfolded less than a day after the popular San Francisco-based online messaging service filed plans to sell as much as $1 billion of its stock under the ticker “TWTR.”
Tweeter Home Entertainment Group Inc., which has the symbol “TWTRQ,” skyrocketed as much as 1,800 percent Friday after the U.S. markets opened. The stock topped out at 15 cents, according to Yahoo Finance.
More than 14.4 million shares changed hands before trading was halted at 12:42 p.m., when Tweeter was down to a nickel. Over the past year, the daily average volume was about 29,000, according to FactSet.
The Financial Industry Regulatory Authority stepped in after determining “an extraordinary event has occurred or is ongoing that has had a material effect on the market” for the stock. It also cited a misunderstanding related to the “possible initial public offering of an unrelated security.”
While investors still speculate in its stock in the over-the-counter market, Tweeter has no business. The Canton, Mass.-based chain that had a large store at Mount Pleasant Towne Centre from 2004 to 2008.
Its owner filed for bankruptcy in 2007 after it got caught up in a bruising price war for flat-screen TVs. The business never recovered and liquidated the next year.
The Associated Press contributed to this report.