Dixx Communications (NASDAQ: DIX) saw a notable rise today as details of an impending name change hit the markets.Shares of Dixx shot up 30% by the closing bell, and according to Dixx CEO Julius Naranjo, "It could be because we don't want to be Dixx any more."
Indeed, this week Dixx streamed a corporate video to employees announcing a contest to come up with a new name for the company, which was named after founder Holden Dixx in the early 1960s.
Fonda Dixx-Harder, daughter of Holden Dixx and current CFO told us, "In recent months we've tried The Dixx Group, Dixx Broadcasting, and Dixx Communications. I hate to admit it, but our mistake may have been refusing to let go of Dixx."
Of all radio company stocks, Dixx has been shafted the most since the beginning of the current recession. Analysts agree that the problem may be the seminal "Dixx" name. Speaking on the condition of anonymity, one Wall Streeter told us, "To be a success, first they need to get their 'Dixx' out. Without removing the family name, Dixx won't grow."
All The Excess! will continue to follow the Dixx re-branding process, although the familiar radio broadcasting landscape just won't be the same without Dixx in it.
