FinMar News’ Post

Allbirds has been issued a warning from Nasdaq: The company has six months to raise its stock price to more than $1 dollar for 10 consecutive business days. It's the latest challenge for the struggling sneaker brand. Allbirds’ stock has plunged more than 90 percent since its 2021 IPO. After an unsuccessful push into the activewear space, Allbirds said it would refocus on core styles like the Wool Runner. Allbirds said it would “consider actions that it may take in response to this notification” to become compliant with Nasdaq listing requirements. What do you think should be Allbirds' next move?

After much speculation following a patchy IPO, BIRKENSTOCK released its earnings for 2023 a few days ago. To mere mortals, the figures look strong, especially given that YoY parity was generally considered a good result for most brands in 2023. CEO Oliver Reichert announced revenue of €1.492B, a 20% increase on 2022. It is profitable as well, with net profit of €207M up from €175M and all regions are performing; North America is +21%, Europe +18% and Asia-Pacific, Middle East, and Africa +24%. Sounds good, right? Unfortunately not. The analysts and traders are ‘disappointed’ and the shares fell 8%, despite Birkenstock suggesting revenue will hit €1.76 billion in 2024, a further 18% growth. In a challenged market, these figures feel stellar and this pressure to increase revenue feels like a recipe for disaster for the brand long-term. I’m not naïve, I know any listed company will eventually start making short term decisions to meet investors guidance for an earning call - it’s the pay-off for going public, but is 20% growth really not enough? The company priced its IPO on the NYSE at $46 per share, in the middle of its $44 to $49 price range - it was an undoubtedly a punchy price - 6.9x annual sales and a price-to-earnings ratio of over 45x. The IPO raised approx $1.48 billion and gave Birkenstock a valuation of around $8.64B allowing L Catterton to nearly double the €4 billion they paid for a majority stake in 2021. Immediately, it had a tough ride on the markets, with investors feeling the price was too high. The company's shares have consistently traded below the launch of $46 and dropped to as low as $35.83 just days after listing. In some ways this is not surprising as other listed footwear brands have not fared well in recent years. Allbirds’ stock has decreased 96% from since its IPO, and Dr. Martens plc stock has fallen as low as 75% from its IPO price and have just released a very challenged set of results, following a 21% drop in revenue for Q3 last year. Contrast this to the statement released by LVMH CEO and Chair, Bernard Arnault yesterday at their earnings announcement yesterday; “When you’re achieving 8 or 9 per cent, maximum 10, that suits me. For the desirability of the brand, it’s perfectly adequate,” Obviously it is an unfair comparison, LVMH have been a publicly traded business for a long time v BIRKENSTOCK’s recent float, but it makes you think, right? BIRKENSTOCK have built their business immaculately with restraint and conservatism, and it has worked incredibly well. However, this long-term playbook is now under threat since going public and the balance starts to shift. How long before we start to see the pressure, especially from short selling investors really start to impact the decision making and ultimately impact the relationship with the consumer. DHR Global #fashionbusiness

IPOX® Breaking News: Strong earnings propel luxury sandals maker Germany-based Birkenstock (BIRK US) to fresh post-IPO high / IPOX® 100 Europe ETF (ticker: FPXE) in focus / www.ipox.com Bullish European IPOs: Europeas IPOs continue to produce market-beating returns, indifferent where they are listed. The diversified IPOX® 100 Europe Index ETF tracks the most liquid European IPOs, Spin-offs and respective M&A trading around the world and has gained +14.63 YTD (Y/Y: +23.69%). BIRKENSTOCK Arm nVent Nordnet Bank AB InPost Porsche AG CVC Capital Partners Sandoz Darktrace UCB Lottomatica Höegh Autoliners Pluxee Vår Energi IONOS HENSOLDT Allegro THEON INTERNATIONAL DOF Conduit Rusta Marex Galderma Alvotech NewAmsterdam Pharma Corporation

Fun facts today… The term “green shoe” in an IPO (Initial Public Offering) comes from the Green Shoe Manufacturing Company (now known as Stride Rite), which was the first company to include this type of option in its underwriting agreement. A “green shoe option” (or overallotment option) allows underwriters to buy up to an additional 15% of shares from the issuing company if demand for the stock exceeds expectations. The green shoe option helps stabilize the stock price during the initial days of trading. If the stock price rises above the offering price, underwriters can buy additional shares at the original offering price to meet the excess demand, ensuring a smoother market entry for the new stock. Conversely, if the stock price falls, they can buy back shares in the open market to support the price.

A trade idea for sales season.... Not sure about the stocks mentioned in the article below, but Levi's might be not a bad idea to play online/holiday sales season. Levi's is doing almost 50% of sales online so might be a reasonable trade... #LEVI #KTB - - - Top 10 Stock Picks For The Holiday Boom: Adobe Forecasts Unprecedented E-Commerce Sales This Season https://lnkd.in/dRmqjZxi - - - - Nearly half of Levi’s sales are happening online and in its shops, a shift as department stores fade https://lnkd.in/dGBnJYYb - - - - Event-Driven Value Investing https://lnkd.in/dqqjjz7K - - Recent stock recommendations included such big winners as: Solvay SA, spin-off (+90%, Dec-23 - Oct-24, 10 months) Colgate, activist investor/value (+36%, Aug-23 - Oct-24, 1.2 years) Adidas AG, struggle and emotions (+143%, Oct-22 - Oct-24, 2 years) ESAB Corp, spin-off (+143%, Aug-22 - Oct-24, 2.2 years) Altra Industrial Motion (+61%, Sep-22 - Oct-22, 2 months) Kontoor Brands, spin-off (+155%, Jul-22 - Oct-24, 2.2 years) Api Group, SPAC/M&A (+133%, Jun-22 - Oct-24, 2.3 years) Berry Global Group, M&A (+78%, Oct-20 - Nov-24, 4 years) ASICS Corp, Japan/value (+720%, Feb-20 - Oct-24, 4.7 years) In the past, recommendations included WK Kellogg (spin-off), Atmus Filtration Technologies (spin-off), Worthington Steel (spin-off), Carrier Corp (spin-off), Otis Worldwide Corp (spin-off), Jackson Financial (spin-off), Pinterest (activist investor), Bioverativ (acquired by Sanofi), Bats Global Markets IPO (acquired by CBOE), Baxter/Baxalta spin-off and activist, Nomad Foods SPAC, Terex Corp Konecranes transaction, PayPal spin-off from eBay, Activision Vivendi buyback, SAIC Corp spinoff, Murphy USA spin-off, Shire plc, Travelport Worldwide, Atkore International buyback and many others. All trade/investment ideas can be confirmed by research notes, articles, trading records (contact for specific information) We will be delighted to see you among our subscribers! Contact us at [email protected] - - - #equity #equities #investment #investing #strategy #stock #stocks #trade #trading #investors #trader #traders #hedge #hedgefund #hedgefunds #merger #mergerarbitrage #arbitrage #event #eventdriven #activists #activist #buffett #berkshirehathaway #quanttrading #quantdeveloper #quanttrader #quantitative #quantitativeresearcher #systematictrading #dubai #property #realestate #dubaiproperty - - - -

Fashion meets finance with the Purple United Sales IPO! 💼✨ This fashion brand, founded in 2014, is opening its IPO from December 11th to 13th, with a price band of ₹121-₹126. Could this be your next stylish investment move? 📈 Thinking of applying? Share your thoughts below 👇 Follow Hitesh Arora . . . #traderlifestyle #stock #stockmarket #share #sharemarket #hitesharora #ipoupdate #ipoalert #marketresearch #marketanalysis #ipoallotment #explorepage

Rent The Runway shares are soaring during Thursday's trading session after the company shared an upbeat outlook for the year ahead. Rent the Runway stated that 2023 was a year of "significant improvements," expecting 2024 to be a "milestone" year for the company's financials. The company which belongs to the Zacks Investment Research Retail - Apparel and Shoes industry, posted revenues of $75.8 million for the quarter ended January 2024, surpassing the Zacks Consensus Estimate by 1.75%. This compares to year-ago revenues of $75.4 million. The company has topped consensus revenue estimates two times over the last four quarters. #renttherunway #fashion #revenue #earnings #tech https://lnkd.in/grNDNSFF

Zumiez shares surge after hitting 52-week high on strong Q2 results #Zumiez #RickBrooks #RetailStocks #Q2Results #StockMarket #InvestorNews #ActionSports #RetailGrowth #WallStreet

Fashion retailer Superdry will cease trading on the London Stock Exchange later today as part of its restructuring plan. Click the link below to find out what's next for Superdry. #fashion #fashionnews #retailnews

UNLOCKING THE GREEN SHOE OPTION : A Powerful Tool in IPOs! "Get ready to 'step into' the world of green shoe options!" HISTORY AND ORIGIN... The green shoe option originated in 1967 when Goldman Sachs first used it for the IPO of the Green Shoe Manufacturing Company (now part of Nike). This innovative strategy allowed the company to "stabilize the ship" and manage demand. What is the Green Shoe Option? The green shoe option, also known as the overallotment option, is a provision in an IPO that allows the underwriter to "take a bigger shoe size" - selling additional shares (up to 15% of the initial offering) at the IPO price. This helps in stabilize and manage the sudden volatility and demand in stock. WELL HOW IT WORKS THEN? 1. IPO pricing: The underwriter sets the IPO price - "the starting gun." 2. Overallotment option: The underwriter is granted the option to purchase additional shares - "the green light." 3. Exercise period: The underwriter can exercise the option within a specified period (usually 30 days) - "the window of opportunity." For example, if a company instructs the underwriters to sell 200 million shares, the underwriters can issue an additional 30 million shares by exercising a greenshoe option (200 million shares x 15%). TECHNICAL APPLICABILITY... The green shoe option is commonly used in: - IPOs - "the main event" - Follow-on offerings - "the encore" - Rights issues - "the shareholder shuffle" - Privatizations - "the private dance" Underwriters use greenshoe options in one of two ways. First, if the IPO is a success and the share price surges, the underwriters exercise the option, buy the extra stock from the company at the predetermined price, and issue those shares, at a profit, to their clients. Conversely, if the price starts to fall, they buy back the shares from the market instead of the company to cover their short position, supporting the stock to stabilize its price. So next time you hear about a green shoe option on CNBC, you better know that: - It's not just a fancy term - It's a strategic move to stabilize the market - It's a powerful tool in the world of IPOs Share your thoughts on the green shoe option! Until then Big Shorts for you. #GreenShoeOption #IPO #Finance #Investing #StockMarket #Underwriting #Stabilization #Volatility #InvestorEducation #FinancialLiteracy