FOXF now trading as a public company on NASDAQ: http://seekingalpha.com/article/1614442-ipo-preview-fox-factory-holding?source=nasdaq The article has some interesting info and stats about profitability, OE vs aftermarket sales, etc... IPO priced at $15 per share, currently up 28% to $19.30. Could have paid for a new fork if dropped some cash on the IPO...
Thanks. I wonder if I could find cost of goods sold on a fork. SRAM was going to go public too. But I think they've put plans on hold.
Actually it opened at $18 bucks. Still a good buy at this time. Your support is $18 bucks, so set your stop there.
Stockholders meeting: "Are you telling me we can save $50 per fork on materials and spend only $20 extra per fork in returns/repairs?" ....
The part where they said stockholders paid themselves a special dividend both interested and scared me away.
Not only that most of the shares sold were from existing shareholders. You usually see some sellout in IPO but not 60% of the offering... "We are selling 2,857,143 shares of common stock. The selling stockholders identified in this prospectus are selling 5,714,286 shares of common stock."
I think the 60% is from the private equity firm Compass Group Diversified Holdings who are selling their controlling stake that they bought in 2008.
Yeah, that "Recapitalization" and dividend thing they did in 2012 is a tangled web... but they state they do not intend to pay dividends going forward. A couple tidbits I found interesting.... - 67% sales is mountbike related. 81% of that OE (bike makers/new bikes). 56% to the 10 biggest OE customers, 13% Giant. "As a supplier to OEM customers, we are largely dependent on the success of the business of our OEM customers" - "continuing product cycle innovation, which we have observed often motivates consumers to upgrade and purchase new products for enhanced performance" i.e Thank You 650b/27.5 -"Although we currently manufacture most of our suspension products at our California facilities, we are in the process of transitioning the majority of our mountain bike products manufacturing operations to our new facility in Taichung, Taiwan over the next three years"
Dividend recaps are a sign of the times that the capital markets are wide open. Prior to 2007, 50% of the new middle market deals (like this one) were dividend recaps. From 2008-2010, you couldn't get investors to buy a dividend recap deal. But if the capital is available, PE shops will always take their money out if they can. Does anyone know what multiple of ebitda the debt and equity are trading at?
They're raising $120 million with this IPO. They said that much of that is going to pay off a "debt". That "debt" is actually a special dividend of $67 million paid to "sponsors", AKA the shareholders. The rest goes to Fox Factory for investing in whatever, which apparently includes transitioning their manufacturing operations to Taiwan. Compass offered a good portion of their shares in the IPO, but they still have a 50+% controlling stake in Fox. Other shareholders offered portions in the IPO, such as Bob Fox, whose stake dropped from 14% to 10%. In other words, shareholders participating in the IPO are getting almost a 60% stake in the funds raised in the IPO, which is relatively high. I said I was interested and also scared away due to this, because it makes me wonder just how much they care about the growth of the company in relation to how much they care about their own bank account. That or I wonder just how confident they are in the company's growth, considering the plans they have for using up this capital. On the biking industry side of things, RockShox just needs to win more OEM contracts to out-do Fox, and the Pike certainly just hit the Fox 34 hard in the high end market. The RP23/CTD's dominance just seems untouchable.
As an investment opportunity, who cares. . .. As a mtb product, they are going to try to maximize efficiency and profit to please shareholders, and hopefully maintain quality at the same time. there is way more profit to be found by investing in other sectors. look at Tesla motors, Gilead pharmaceuticals, etc. over the past 6 months. . . .
really??? You're pointing out stocks that have been running up for 6 months and telling everyone to discount an IPO that may or may not have potential? Typical sheep. Btw, I trade on a 10:1 margin and this IPO went up 1.5 points today. I'll take 1 point on any stock any day.
Lol trading stocks is a death wish. Be conservative with your money and invest in index funds; you are not smarter than the market.
Taichung is where all your specialized, giant, santa cruz and pivot bikes are made. My brother in law works for Sram in Taichung, he makes $24,000 a year and has a masters degree in mechanical engineering and a MBA. You tell me if you are running Fox, you wouldn't consider moving the factory to Taiwan?