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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV