It appears they cut the secondary offering almost by half, amid the dropping of the stock price lately. (presumably there is a lack of interest by institutional buyers). Here is the amended SEC filing. They are going to sell 4.5 million shares instead of original 8 m shares. Now if they could find enough buyers for this.
Separately, I took some profits by selling half of my CROX.
(Update June 10) Today when I visited Galleria Mall, I saw Walk ‘N Roll, a knockoff of Heelys. Unlike Crocs, I think knockoff will take a toll at Heelys’ sale.
(Original June 8 ) Here is the S1 prospectus from SEC web site. It appears the selling shareholders (mostly venture capital) filed on June 7 to unload 8 m shares. My suggestion is don’t touch this skating shoes maker because I don’t like its growth prospect. I already sold all shares which I bought during its IPO debut last Dec.
I expect the secondary will be sold very soon, maybe next week?
I went to West County mall in the weekend, my first trip after coming back. Among all the St. Louis malls, I like West County the best because it has some of my favorite products (or stores): Apple store; Journeys, the shoe store has Crocs and Heelys; Dick’s Sporting Good has Crocs and Under Armour. Here is my impression on them.
I sold all the remaining HLYS shares on Monday May 7 (before the Q1 earning announcement). While I enjoyed my Heelys shoes, the stock (HLYS) did not turn out to be as good as I expected. The main reason is I jumped too early (I bought it in on its IPO debut at 35 and 32). By doing this I have more downside than upside. The stock will under pressure short term because of its so-so guidance and the secondary offering.
Long term, I think Crocs (CROX) will be better investment than Heelys (HLYS). I saw more and more Crocs in Shanghai stores. While the sales in China is not significant at this time, as I said before, Crocs has wider appeal than Heelys and Under Armor (UA). Like Starbucks, eventually China market will grow and have meaningful impact to the company.
Fuwei Film (FFHL) stock got a 22% jump today after it announced a very good earning report. Interestingly, I was thinking about this little known company lately. Why? Because I noticed a few days ago it got upgrade from Maxim analyst. The stock went up about 10% and dropped back to 10 in a few days. More importantly, I liked its products: plastic films used both in cosumer products packaging, and industrial packaging. Here is a link of their products (with pictures). Notice anything familar? From juice and milk bottles, to cigratte, liquor (alcohol), to laundary powder,…things we consume (eat, drink, use) daily.
The first quarter is behind us. Just like a public company reporting quarterly results and holding conference call, I am going to do a quick review of my little portfolio. This quarter is a quite rollercoaster for me, as it did for many investors. The Jan and Feb started fairly strong and at one time I had more than 10% gain (I used google finance to track my investments). This is until Feb 27. In one day I lost all my 10% gain because of the loss of my Chinese ADRs (HMIN and MR each lost more than 10%).
I mean the stock market. Dow lost more than 400 points. My brokage account lost about 10% of its value today. The biggest decliners are Home Inns (HMIN) and Mindray (MR); but Crocs (CROX) and Heelys (HLYS) are not helping either 😦
Now the question is: is this a healthy correction? Or the beginning of (dare I say) bear market? I don’t have the answer. Personally I feel the market needs some sort of correction, especially in China, where the reality did not support the hefty stock prices. But do I think US consumers and business suddenly hit the break on everything? Probablly not. Same thing can be said else where.
New Oriental (EDU, based in Beijing): every Chinese student came to US for study knows that, no need to say anymore.
Home Inns (Rujia, HMIN, based in Shanghai): my friend in my hometown told me about this in summer 2004. He is a small business owner and he thinks that Rujia is clean and economical. He would stay there when he visits Shanghai as long as he does not see his foreign clients. I believe business travallers make up more than 50% of Rujia’s business.
Mindray (MR, based in Shenzhen): found out shortly after its IPO. I always liked medical device makers, both from investment and health/science point of view. The barrier of entry is high: unlike English (or IT) training, you put ad on newspaper, hire some English teacher and find students and a classroom, you are good to go. For medical device, you will need R&D talents (hint: graduates from HUST), good sales and customer support, all of which you can not get overnight. The risk: lawsuits, regulatory procedures.
I found a new trend about the companies’ quarterly earning Conference Call lately. Usually a company will do the conference on the Internet and on the phone at the same time. But Crocs (CROX) and Heelys (HLYS), two shoe makers (I have shares for both), lead the fashion again by doing the call exclusively over the Internet. I hope they don’t srewed up the call by technical reasons. I do notice they have two servers so in case one server is busy, the analysts and curious investors like me can still connect.
It’s amazing to think how far Internet has been in the past 10 years. It definitely changed and continue to change the way we communicate, work and entertain, etc.
(Update 16Feb07) On the other hand, Mindray (NYSE:MR), which I have a few shares, is going to announce its earning solely on the phone.
Also, cnanalyst put together an earning report table for Chinese companies listed in US. Good job cnanalyst !!!
We all know it’s a fad. But here is the one million dollar question: when shall we take profit (or loss) for the Heelys stocks (HLYS)? From the IBD article today, it seems Heelys still got room to grow. The following is quoted from IBD:
“For one thing, there’s still plenty of room to grow sales in parts of the country between the coasts, he says. And overseas sales offer lots of potential, especially in Europe.
A thousand words 