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.

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