Market's view on Redde Northgate
Published on April 2024
- Concerns about the proposed rebranding to “Zigup” have been voiced, with many preferring the old name “Redde” and questioning the value of the change.
- The new name “Zigup” has been criticised for sounding unappealing and resembling the verb “sick up”.
- The company’s board has been accused of anticipating a negative reaction, as evidenced by the absence of a proxy form with the circular about the rebranding. Stock watchers are urged to contact the registrars to obtain one.
- Some believe that the name change suggests either a lack of new ideas or a potentially risky new direction for the company.
- Despite these concerns, the stock price has experienced a rise.
- There is a belief that the rebranding will not substantially affect the current operations or require extensive changes to the company’s assets like vans, websites, and paperwork.
- The decision to keep the operating brand names while changing the PLC name has been noted.
- Questions about the cost and the consultancy involvement in coming up with the new name have been raised.
- The trademark for the new name, Zigup, was reportedly filed in 2022, indicating long-term planning behind the rebranding.
- A stock watcher has highlighted that despite concerns, the stock remains a valuable long-term hold based on its financial metrics like dividend yield and P/E ratio.