Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Mattress Company Casper Ends First Day of Trading 13% Higher
“Shares in the mattress-in-a-box company Casper jumped in their debut on Thursday to close almost 13 per cent higher but still falling short of the range bankers had sought over a week ago.”Financial Times 2/7/2020
(If trouble accessing, try clearing some recents from cache.)
Are you trying to tell us that we should put our money into mattresses?
On the next trading day, CSPR closed at $11.05, down 18% on the day. That was lower than the bottom of its IPO pricing range, which had already been reduced by about a third from what the company had initially hoped for.
Not something I have followed (especially since I really don't like foam mattresses). My naive impression is that there is little barrier to entry: take some foam, stuff it in a box, and ship it.
Here's an opinion piece from Bloomberg (free via Yahoo) along the same lines. "There are an astonishing 175 DTC [direct to consumer] mattress companies."
Haven’t analyzed the company, but it’s pretty common for companies to fall below their IPO price not long after their IPO as executives/founders/Vc folk looking to cash out of their erstwhile illiquid shares sell them in the open market. It would have to be a truly exciting transformative company for me to think it worthwhile to buy it on its IPO date. Casper is probably not that company.
Comments
On the next trading day, CSPR closed at $11.05, down 18% on the day. That was lower than the bottom of its IPO pricing range, which had already been reduced by about a third from what the company had initially hoped for.
Not something I have followed (especially since I really don't like foam mattresses). My naive impression is that there is little barrier to entry: take some foam, stuff it in a box, and ship it.
Here's an opinion piece from Bloomberg (free via Yahoo) along the same lines.
"There are an astonishing 175 DTC [direct to consumer] mattress companies."
https://finance.yahoo.com/news/casper-ill-prepared-leave-unicorn-211208628.html