Just Another Pig?

The retail industry is as flaky as the teenagers that work the registers. And footwear can be the trickiest consumer sub-sector to invest in. For every CROCS, Inc. you have a Florsheim.

Heelys (HLYS-NASDAQ) recent IPO owed a huge debt to the runaway success of CROCS, Inc. They might have been able to get the deal done without CROCS setting the table, but without an assist Heelys valuation would have suffered.

Heelys’ stock has hit the skids however; it continues to plumb new 52-week lows despite blowing out earnings last time they reported. Overhang, in the form of a share offering, is the culprit. The Bear just downsized the pending Heelys deal from 8 million shares to 4.5 million. Maybe that will do the trick. Bear Stearns has another loser on its hands, although pricing the stock in the hole might finally do the trick and put it to bed.

And Bear reaps another payday.

But Heelys still suffers from a Jim Cramer induced hangover.  Hype kills.
Shades of Fortress, and now Blackstone.  Too much hype.

Both stock’s peaked when they opened for trading. But what would Schwarzman look like all dolled up? If the stock cracks the $31 offering price we might just find out if BX is a pig.

Hopefully Schwarzman’s friends are more loyal than Jimmy Cayne’s. The $31 level is a line in the sand that this suddenly jittery tape does not need to test.

Heelys Prospectus
SEC info
11/24/07

Friday’s Breakfast Menu: Pork Sausage
12/8/07

Oink
1/17/07
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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