This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Investors Seek Out Chinese, Consumer IPOs

Vera Bradley and Bravo Brio are impressive because they have grown while unemployment remains high, said Francis Gaskins of research firm IPOdesktop. Neither are discounters: Vera Bradley's signature quilted handbag costs $52, while the average check per person at Bravo's two chains are $19.28 and $25.14, respectively.

"We've been able to grow in difficult times," said Vera Bradley CEO Michael Ray on Thursday. Now he's noticing new costumers are picking up the company's quilted bags, he said. "Signs are encouraging that the consumer is coming back."

A few other U.S. apparel retailers have gone public recently â¿¿ Express Inc. in June, Body Central Corp. earlier this month. A U.S. restaurant chain hasn't gone public since Einstein Noah Restaurant Group Inc. in June 2007, according to IPO research firm Renaissance Capital.

The success of Vera Bradley and Bravo Brio may prompt other consumer companies to go public, but there's nothing coming up in the next couple weeks. Toys 'R Us filed plans for an IPO in late May, but hasn't made a move yet, Gaskins said.

The wave of China offerings, however, continues into next week. Of the six companies on tap to go public, Chinese Internet retailer Mecox Lane Ltd. is getting a lot of attention from investors, said IPO Boutique's Scott Sweet, who tracks and rates initial public offerings. Another Chinese company, vegetable producer Le Gaga Holdings Ltd., is also expected.

Still, not every China deal has been a success. Chinese pharmaceutical company ShangPharma Corp. fell 15 percent in its first day of trading Tuesday and remained below its offering price at the end of the week. That's indicative of a discerning IPO buyer who doesn't regard any broader sector or region of the world as a sure bet, especially after the market booms and crashes of the past five years.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs