The Other White Meat
Ravenous investors who can’t wait to sink their teeth into the pending HEELYS IPO (HLYS-NASDAQ) continue to tear into the shares of Capital Southwest Corporation (CSWC-NASDAQ).
Capital Southwest, one of the larger publicly-traded venture capital incubators, has witnessed a sharp rise in their stock since the HEELYS deal was filed.
Based on the mid-point of the $16-$18 offering range, Capital Southwest’s 10.9 million shares of HLYS are being valued at approximately $185 million. Bulls no doubt are looking for the stake to be valued much higher after the dust settles on HEELYS public debut.
The only losers in this deal thus far appear to be consumer advocates who raised a stink over HEELYS on the eve of the investor roadshow.
Of course, a black eye beats top-ticking the stock.
Pull up a chair. This one should get interesting.
Fleetwood Mac Market
Rumours made the members of Fleetwood Mac rich. This market will make bankers and corporate management teams rich. And Main Street? They have a saying in Vegas…
Good Luck
Today’s price action in 3COM Corporation (COMS-NASDAQ)) was a rude reminder of what can go wrong. Speculators ramped the stock to over $5 earlier this fall on chatter that was close...but no cigar.
Of course close is fantastic...if you are playing horseshoes.
Here is a small sample the rumor mill over the last 24 hours...let see how many pan out.
Unsafe At Any Speed
HEELYS, INC.
Common Stock
This is our initial public offering. We are offering shares of our common stock and the selling stockholders identified in this prospectus are offering an additional shares of our common stock. We will not receive any proceeds from the sale of the shares being sold by the selling stockholders. We expect that the initial public offering price for our stock will be between $ and $ per share.
Prior to this offering, there has been no public market for our common stock. We have applied to list our common stock on the Nasdaq Global Market under the symbol “HLYS.”
Investing in our common stock involves risks. See “Risk Factors” beginning on page 6.
With stocks like CROCS all the rage, real estate in the toilet and hot IPO’s once again capturing Main Street’s imagination, it is a good bet investment bankers will try to feather their nests by throwing shit against the wall.
Not long ago we used to challenge taxi’s all over the streets of New York on our roller blades. We also used to triple weight technology stocks. Ah, to be young and fearless.
Heelys are now more popular with children than technology stocks are with StockJockeys.
We are a designer, marketer and distributor of innovative, action sports-inspired products under the HEELYS brand targeted to the youth market. Our primary product, HEELYS-wheeled footwear, is patented, dual-purpose footwear that incorporates a stealth, removable wheel in the heel. HEELYS-wheeled footwear allows the user to seamlessly transition from walking or running to skating by shifting weight to the heel. Users can transform HEELYS-wheeled footwear into comfortable street footwear by removing the wheel. Read Form S-1 here
But with several accidents garnering media attention, can Ralph Nader be far behind?
As the popularity of Heelys, a type of skate shoe with detachable wheels in the heels, continues to soar (more than $44 million—the manufacturer’s net sales increased 106% from 2004 to 2005) so does the number of injuries to children. Use of this product can lead to concussions, fractures, lacerations and even death. This past March, a boy died while wearing his Heelys when he collided with a car. 10 worst toys list
Hospital Operating Rooms are apparently busier than HEELY retailers. If the bankers can get this deal to fly we will tip our hats to them.
But prospective investors might need a helmet.
Goldman Lays an Egg
We are not jealous folk by nature here at UTC. But when we get a chance to poke fun at Goldman Sachs we will take it. It’s not just because they work for the most profitable company, pound for pound, on the planet. Or get their phone calls returned faster. Or because their alumni read like a who’s who list of the business world.
OK, maybe we are jealous. Just a little.
Although last week’s Goldman-lead Acme Packet IPO was a home run, their deal du jour was a bit of a dud. Goldman Sachs priced 5.5 million shares of Lemaitre Vascular (LMAT) at $7. The stock opened at $6.50 and it closed near its lows for the day.
Will it dim Goldman’s luster? No
Will it reduce their bonus pool? Nope
Does it prove they are human? Maybe
But we just want them to know that we are paying attention. And sending resumes.
Surely there has to be an opening in the mail room.
LeMaitre Vascular IPO falls below offering price
