The company went public on Oct 27 at the high end of its rage, raising almost $150 million at $20 a share. The stock now trades at $24.02. For the six months ended July 3, it made $9 million in income, up from $630,000 in the same period in 2003. With $170 million in cash after the IPO and no debt, the company has a long way to go before running out of steam. Note that Build-A-Bear is not to be confused with the Vermont Teddy Bear (BEAR - commentary - Cramer's Take), which is also demonstrating over 50% year-over-year income growth.
So while tech is great and momentum stocks have their place, companies that let you store your old junk and hug a teddy bear are here to stay, even if they don't have names that pass marketing muster. By the way, marketing can be learned. I printed up business cards after that meeting.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Build-A-Bear Workshop to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
P.S. Will you be there when Cramer makes his next move?
Strong brands and companies with vast market exposure can help bolster your portfolio. Jim was able to lock in a 64% gain by buying Ingersoll-Rand at $13 and selling at $22.50. Action Alerts PLUS members were the first to see these moves. Were you among them? Get Free Access Today!
James Altucher WPT Stuck With Current Hand 10/25/2004 1:00 PM EDT The poker trend has boosted this August IPO, but the stock looks like a house of cards.
James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and the upcoming Trade Like Warren Buffett. At the time of publication, neither Altucher nor his fund had a position in any of the securities mentioned in this column, although positions may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback and invites you to send it to james.altucher@thestreet.com.TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon purchases by customers directed there from TheStreet.com.
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