What happened
Shares of Chinese financial services company 9F (JFU 0.23%) jumped 16.8% in 10:40 a.m. EDT trading this morning, apparently in response to a press release yesterday announcing the date for an "extraordinary general meeting" of its shareholders.
And yet the subject to be discussed at this meeting doesn't really seem like the kind of thing that should be adding tens of millions of dollars to the company's market capitalization.
Image source: Getty Images.
So what
As 9F explained, when its shareholders meet on July 8, they will "consider, and if thought fit, approve the change of the Company's legal name from '9F Inc.' to 'Ether Securities, Inc.,'" thus formalizing the company's focus on brokering stock.
"The proposed name change will not affect any rights of shareholders or the Company's operations and financial position," as management clarified. Literally the only thing that will happen is that the name will change.
Now what
Not changing will be the facts that 9F -- or "Ether Securities" if you prefer -- lost $346 million last year and $310 million the year before that. Not changing will be the fact that revenues plunged 70% last year (and according to data from S&P Global Market Intelligence have been falling for three years straight).
And given those facts, maybe the best course of action 9F investors can take is to take today's windfall gains, say thank you, and exit the stock before things get any worse.
