|17-Jan-07||CIBC Wrld Mkts||Initiated||Sector Perform|
The full story is here. I would not take their ratings too seriously (I would like to read their analysis instead). The 60% sales increase in California (No. 6 economy in the world if considered as a country) in 2006 is a good sign. Is California a mature market as the analyst suggested? I don’t know.
I did a little analysis on its sales in past two years (from its S1 form). Here are the data
2004 2005 2005 9m 2006 9m 9m growth
Sales $21,310,000 $43,950,000 $29,052,000 $117,107,000 303%
# of pairs 697,000 1,411,000 927,000 3,858,000
$ per pair $30.57 $31.15 $31.34 $30.35
Disclosure: I am long (overweight) on Heelys.