What’s in a name? For these IPOs, not much

Abel Mitja Varela | E+ | Getty Images

The IPO market is heating up. There have been 140 IPOs priced in 2013 thus far, which is 40 percent more than the same time last year, according to Renaissance Capital. And this week alone, 13 companies are expected to go public. But do investors really know the first thing about these companies?

If they don't, then the companies' names aren't offering any great clues. When we provided professional traders (and Options Action contributors) Scott Nations and Brian Stutland with the names of six companies going public this week, their guesses ranged from the humorous to the indignant—to the impressively accurate.

Covisint (Ticker symbol: COVS)

What it sounds like:

"That's some basic material company making some metallurgic material," guessed Brian Stutland, managing member of the Stutland Volatility Group.

Scott Nations of NationsShares had a different interpretation. "They better be in health care," he said.

What it is:

In actuality, Covisint is in the hot field of cloud computing, where it mostly serves health-care and automotive companies. It is looking to raise $64 million this week.

Enzymotec (ENZY)

What it sounds like:

"That is the most convoluted name I've ever heard," Nations said. "The '-motec' part makes it sound like it's some sort of competition for the Segway."

Stutland had another take. "They're an energy company that does something with oil rigs," he guessed.

After some more thought, Nations simply gave up. "I have no clue what that company does."

What it is:

An Israel-based company that is looking to raise $75 million, Enzymotec makes lipid-based nutritional ingredients and medical foods.

"And it sounds appetizing, too!" Nations commented.

(Read more: Twitter IPO: Is it the next Google or Groupon?)

Premier (PINC)

What it sounds like:

"It sounds like a new men's magazine," Nations offered.

But Stutland disagreed. "It's a company that finds you all the best upgrade seats for the airline industry," he ventured.

What it is:

Premier is actually a "health-care alliance" that serves as a medical supplier. It is looking to raise some $690 million this week.

Fate Therapeutics (FATE)

What it sounds like:

"It sounds like some sort of mind-reading therapy that you can have done to yourself," Stutland said.

What it is:

Fate Therapeutics is a biotechnology company that describes its mission quite simply: "Harnessing the potential of stem cell biology to transform the lives of patients with rare life-threatening disorders." The company is looking to raise $60 million.

Tecogen (TGEN)

What is sounds like:

"That is so generic, why don't they just call it ABC Inc.?" Nations asked. "That's not even an inkblot—you can't even come up with anything for that one."

But Stutland had an idea. "They come up with biogenetic testing for sickness," Stutland said.

What it is:

Tecogen, which is planning to raise $20 million, is actually an energy technology company. The company makes systems powered by natural gas engines.

(Read more: Twitter may kickstart consumer-tech IPO train)

Violin Memory (VMEM)

What it sounds like:

"That's got to be a music app for the iPhone," Stutland said.

"They've obviously building computer chips, but why the 'Violin' part?" Nations mused. "It's got to have something to do with computer chip storage devices for entertainment media."

What it is:

Violin Memory produces flash memory data storage products.

And as for the musical instrument in its name, the reasoning behind it is more poetic than anything else.

"Violin entered the business to manage data at speed," the company said in a statement. "It requires a fine orchestration of memory-based elements, much like a finely tuned violin instrument that the original founders of the company had a great interest in."

So hopefully that clears it up.

—By CNBC's Alex Rosenberg. Follow him on Twitter: @CNBCAlex.

Follow the show on Twitter: @CNBCOptions.

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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