Roots Corporation (Symbol - ROOT)

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randomwalker
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Roots Corporation (Symbol - ROOT)

Post by randomwalker »

Roots Corporation ROOT tse IPO down 20% since it opened this morning. This stock is as popular as earth shoes, should have gone public in 1987.
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kjmcrae
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Re: Roots Corporation (Symbol - ROOT)

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randomwalker wrote: 25 Oct 2017 12:23 This stock is as popular as earth shoes, should have gone public in 1987.
Agreed! IMO, they'll have to completely re-invent themselves to become relevant again.
nisser
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Re: Roots Corporation (Symbol - ROOT)

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Just trying to cash in before the eventual bankruptcy. Don't know a single person who shops there.
thedude99
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Re: Roots Corporation (Symbol - ROOT)

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Definitely wasn't interested in this IPO...just curious though what is the impetus for going public? Typically it's for growth - are they planning on opening a bunch of stores.

One retail stock I'm somewhat interested in is Aritzia. Pretty good financials and opening many stores in both US and Canada.
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Re: Roots Corporation (Symbol - ROOT)

Post by Peculiar_Investor »

Count me among the non-interested in this IPO.
randomwalker wrote: 25 Oct 2017 12:23 This stock is as popular as earth shoes, should have gone public in 1987.
Totally agree. So I did a bit of searching on why the IPO now, and it's private equity backers beginning their exit. From Roots Canada tumbles in first day of trading - Article - BNN
Roots raised $200 million in its initial public offering, with most of it going back to shareholders.

“It was private equity that put some money on the table. I think they wanted to take their money out of the equation,” Wolfgang Klein, senior investment advisor at Canaccord Genuity Wealth Management told BNN. “So, it’s not going back to the company, per se.”
Although Roots is an iconic Canadian brand, at least from a historical perspective, they have been overtaken by others such as Lululemon and Canada Goose which are more "in" fashion.

Perhaps having a public float is a pre-cursor to looking to be acquired?
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AltaRed
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Re: Roots Corporation (Symbol - ROOT)

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They could have just searched out a buyer privately than go through the expense of an iPO. No idea what that company was thinking. FWIW, never been impressed by their stores and their 'niche' does not seem to have staying power. I've never bought anything there...ever, although some 30 something males in our family have from time to time.
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kcowan
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Re: Roots Corporation (Symbol - ROOT)

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AltaRed wrote: 26 Oct 2017 10:29I've never bought anything there...ever
I had a t-shirt back in the day. Of course it was worn out several decades ago.
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Re: Roots Corporation (Symbol - ROOT)

Post by Spudd »

Their leather goods are fantastic. I have a wallet from there that I bought around the year 2000, still going strong.

However, I would not invest in the stock!
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