Following a smattering of news covering companies in a range of different industries pivoting and completely changing their business model toward blockchain technology and cryptocurrencies seeking a massive bump in valuation, we have seen more of where that came from in recent trading days. The highly publicized name change of iced tea maker Long Island Iced Tea Corp. (NASDAQ:LTEA) to Long Blockchain Corp. (NASDAQ:LTEA) has resulted in tremendously volatile swings in the company’s stock price, to the cheer of many day traders who make a living off of such volatility.
For the rest of us who enjoy slow and steady returns over long periods of time, sticking with companies that know their bread and butter and do not need to pivot to blockchain to see a valuation increase is probably the way to go.
That said, the number of companies miraculously making the shift to blockchain out of seemingly nowhere is increasing at a rapid rate. Earlier this week, Eastman Kodak (NYSE:KODK) made the announcement that it intends to change its focus toward blockchain, and the company’s stock price went from a relatively-steady $3 per share level up to as high as $13 per share in two trading days, before paring losses. As of Thursday’s close, KODK traded at the $8.40 level.
This mania is exactly that, mania. Investors have simply not seen this sort of irrational exuberance since the dot-com bubble, and it appears like everyone forgot how that one ended.
Invest wisely, my friends.
