On Wednesday, shares fell more than 21% after the company announced that its ViSalus subsidiary, which provides weight loss products, and nutritional supplements, was withdrawing its IPO. Blyth shares suffered primarily because the IPO was going to provide cash for a special dividend to be paid to Blyth shareholders.
ViSalus has been an engine of growth for Blyth; the company's other primary businesses don't do well in difficult economic conditions, so the ViSalus IPO would have weakened the company. But the cancellation certainly was not popular with shareholders.
Still, the company is interesting from a fundamental perspective, having ended last quarter with $206 million or nearly $12 per share in cash and short-term investments, and $100 million in debt.
I've followed this name on and off for years, it currently garners no analyst coverage, and the stock has been volatile in recent years.It took Wednesday's drubbing to get me to commit to a small position; following the "buy it when everyone else is selling it" mantra that can be a blessing or a curse to the value investor. The company recently hiked its semi-annual dividend to 10 cents. Perhaps it's also time to consider buying back some shares as well. BTH data by YCharts
And finally, more IPO news this week in the restaurant space, which has been very active very active in that regard this past year. Dave & Buster's set its IPO price range at between $12 and $14 per share. This I not the first time to the dance for D&B; they were publicly traded between 1997 and 2006, before being taken private. Can't wait for next week! This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.