Consumer

Can ADT Dance?

ADT Introduction ADT has been around for a long time – they were founded in 1874 and pioneered the current security monitoring business in 1920. They are the giant in the home and commercial security market with over 8 million customers and 18,000 employees in 200 locations. The company has a checkered history – they…

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Stitch Fix has sown up a good clothing business.

Stitch Fix (SFIX) is a service that aims to upgrade your wardrobe right at home. They have embellished the story by talking about “using AI and data science” to make “the future of retail” for clothing. The company is offering 10 million shares at $18-20 with Goldman Sachs and JP Morgan leading the charge. At…

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Funko Bobbleheads?

It’s hard to believe that Funko (FNKO), a company that makes bobbleheads, is going public – and they say the IPO market isn’t robust! Not only that but the deal is led by Goldman Sachs, JP Morgan and BofA with five other co-managers on the cover. [We have both the FNKO IPO slide deck and roadshow…

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Roku Ready – Updated

We sent out the ROKU notes below on September 27th but are providing a few UPDATES here: “Splitting the difference” turned out to be about right – it suggested $20/share and that’s where ROKU settled the first day of trading. Since then it’s moved up a bit more to $23. There are some reasons to…

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Redfin ignores the elephants.

Redfin (RDFN $12-14) is planning to come public this week. The company is basically an online platform for residential real estate sales. Elephant #1: Zillow Anyone familiar with this space would know that it’s dominated by Zillow (ZG) which has been an active consolidator in the space (they acquired their main competitor Trulia in 2014)….

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PetIQ is a good deal but has a few fleas

PetIQ (PETQ $14-16) is a small (~$350M sales) growth company doing an $85M IPO with Jefferies and William Blair as lead underwriters. The deal looks solid given that the company is gaining share in the large and growing market of pet medications, health and wellness products and flea and tick treatments. For the whole story…

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Trivago Feels Scammy

We like to take a look back at an IPO like Trivago (TRVG) six months after pricing and they have a quarter or two under their belt as a public company. This is also the time that IPO share lockups come off and investors evaluate their positions. Trivago (TRVG) came public late in 2016 and…

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Carvana wants to change how we buy used cars

The used car market is huge – around $700B (yes $B) and super fragmented. The top 100 players only control 7% of the market. It’s mainly structural – used cars have been sold more on a regional basis than nationally. Carvana (NASDAQ: CRVN) is offering an online direct-to-consumer model with they own inventory and a…

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Investors take a shine to Floor & Decor

Investors have taken a shine to Floor & Decor (NYSE: FND). The deal was priced way above the $16-18 filing range at $21. The story is fairly simple – FND is like Home Depot for floor products. It’s a massive one-stop shop that appeals to both professionals and homeowners. If you missed it you can…

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The Goose Takes Wing

This week we have the IPO of Canada Goose (NYSE:GOOS). If you live in NYC or Boston you can’t help but notice that everyone seems to be wearing these parkas. How does a company that’s been around since 1957 suddenly make such an impression? Here are a few facts to know about the company and…

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