Monday, September 04, 2006

NHCT: What’s In a Name

When Macy’s bought out Marshall Field’s (MF) I was concerned. I pictured my favorite department store being dozed to the ground, with all of the name brand labels being ground into the dirt. That isn’t what happened. Actually, not much happened. The company now has a Macy’s charge card but even the name on the front of the store stayed the same. A pretty good reason for this is that MF in our area had a pretty good sales record and client base. What good would it do to change the store? Suspicious people like me who had formerly shopped there might back off. Changing the name might actually lose customers. The other part of that is that Macy’s is a good name – but so is MF. There is not really a huge difference in what they do; they are both department stores (or were). If an auto parts store had bought MF, then it might make sense to change the name.

The above account is used to illustrate my confusion concerning a name change that caught my eye recently. On August 28th, National Healthcare Technology Inc. (OTCBB:NHCT) announced that they had chosen a new company name: Brighton Oil, Inc. Does that make sense? What in the world does healthcare have to do with oil? I am sure there are some connections, perhaps in manufacturing plastic items or something like that. Is the company functionally different? That is my question. Has there been such a dramatic shift that a new name is warranted? Or, is a name change the best way to cash in on some of the oil hype in the media? The brief press release issued by Brighton stated that this was the most appropriate name to reflect their growth into the oil and gas industry. I’m not convinced. A comprehensive explanation issues by Brighton might clarify things for me – and for its investors.

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