Consumer

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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Jill Tries to Climb IPO Hill

Despite the “retail winter” that Amazon (AMZN) has wrought on the industry, investors remain interested in finding defensible niches in the business. One meme that has gained some momentum is around “brands that control their product, distribution, and destiny.”  J. Jill (JILL) is a woman’s clothing brand that started out as a catalog business in…

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Snap Part 3 – Just in Case

It’s high-noon for Snap and their bankers at the NYSE trading post. The consensus in the capital markets is that the deal will get down and open above the IPO price. Institutions consider Snap an IPO to own “just in case” it works. Most investors now realize that the historical Snap business is betting eaten…

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Snap Part 1 – First Take on the S-1

Snap is two things – 1) a new mobile communication platform that puts the camera and the microphone (rather than the keyboard, mouse and browser) at the center of everything and 2) an advertising company combining their platform technology with strong creative to deliver advertisements that work for both the viewer and the brand. Here…

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Trivago = Trade Desk meets Tripadvisor

The main IPO of interest scheduled for this week is Trivago (NASDAQ: TRVG). The $400M deal is being led by JP Morgan, Goldman and Morgan Stanley with 7 co-managers tacked on for good measure. Our Quick IV points to a share price of $35 versus the $14 midpoint of the proposed range. Post-IPO, Expedia (NASDAQ: EXPE)…

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Acushnet IPO is a good house in a bad neighborhood

Acushnet (NYSE:GOLF) is the big daddy in the golf world. They make Titelist balls and clubs, along with FootJoy shoes. Titelist is the #1 ball in the game and FootJoy is the #1 shoe. TaylorMade (owned by Adidas) is also big, especially in equipment, but it’s been struggling the past few years. Adidas is currently…

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