S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Investing

Does a Roller Shoe IPO Signal that this Market is Too Hot?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

By Chad Brand of Peridot Capitalist

As you may have noticed, 2006 has been the year of the consumer IPO. Familiar and popular consumer brands have debuted on the public market to much fanfare. Names like Chipotle Mexican Grill (CMG), Crocs (CROX), Mastercard (MA), and UnderArmour (UARM) have all made investors a lot of money. Of that group, Crocs is really the only one that I looked at and said to myself, "Boy, that will be a great short when the fad dies and the stock’s momentum dies down."

Well, that is until we learned that a roller shoe company called Heely’s (HLYS) was going public at $21 per share on Friday, putting the firm’s value at more than half a billion dollars. Shoes with wheels on them? Wall Street can’t be serious.

I am not saying the company isn’t selling a lot of shoes right now, and retail investors are going to bid the stock up a lot just like they did with Crocs as soon as it starts trading. That said, I can’t believe this company is going public. It must say something about the overly bullish stock market environment we find ourselves in right now.

While I won’t be buying any Heely’s shares, I hope they go through the roof. Maybe the company’s market value even hits a billion dollars or two when it’s all said and done. What an excellent short candidate that would make it.

http://www.peridotcapitalist.com/

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Jon C. Ogg |

Blackstone Goes Big Into Crocs, Without a Buyout

Investment funds affiliated with Blackstone Group are taking a $200 million stake in Crocs in newly issued series A convertible…
Douglas A. McIntyre |

Cramer Pans Crocs Long-Term But Likes It Short-Term

On tonight’s MAD MONEY on CNBC, Cramer was on a back-to-school tour at University of Virginia with a couple of…
Jon C. Ogg |

Rethinking Value: Is Crocs Doomed as a Brand?

Kcdtsg via Wikimedia CommonsCrocs Inc. (NASDAQ: CROX) is holding up rather well when you consider that the “maker of ugly…
Douglas A. McIntyre |

Does Cramer Think the Swiss Have Smelly Feet?

Cramer was talking shoes: Says Nike (NKE) still doing well, but K-Swiss (KSWS) is not and it may even be…
Gift Your Loved Ones Shares of These 3 Stocks
Chris MacDonald |

Gift Your Loved Ones Shares of These 3 Stocks

For many of us, the back to school days invites thoughts of the upcoming holiday season, and what that means…
Jon C. Ogg |

Crocs Fights Value Trap vs. Value

Crocs Inc. (NASDAQ: CROX) is getting absolutely crushed. While we always accuse the company of having the world’s ugliest shoes,…
Jon C. Ogg |

Great American Companies That Will Survive the Fiscal Cliff

The coming fiscal cliff represents a huge hurdle for America. Government and private sector forecasters have warned that the expiration…
Douglas A. McIntyre |

Crocs Inc. is trading over $70 a share, is it too much?

Crocs, Inc.  (NASDAQ:CROX) has had an amazing run over the last year, since last May the stock has risen 160%.…
Douglas A. McIntyre |

Nine CEOs Who Will Go By The End Of The Year (CROX)(YHOO)(JAVA)(SIRI)(CBS)(VIA)(GM)(LEH)(Q)

Since 2006, 24/7 Wall St. has scrutinized public companies on a regular basis, focusing on those with poor management and…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618