Vitacost: another recent IPO

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(11Nov09) The company announced Q3 09 results. Note the company had higher than expected expense on stock based executive compensation (related to IPO). Basically the company let the executive stock options vested upon IPO.

(Update Oct 08, 2009) I sold it this afternoon (ET) at $10, and got the new IPO Mistras (NYSE:MG). Like I did many times in the past, VITC went up after I sold it, and MG went down after I bought it 🙁 Did I sell it too fast? Maybe. But I felt Mistras has more potential.

(Original) Vitamin, anyone?

Prospectus (424B4 here)

My comment
One interesting point is as the US population aging, consumption of vitamin, other dietary supplements, sports supplements and fitness club memberships are all rising. This buckled the trend in recession. Convenstional wisdom is as we entering recession, people watch their discretionay spending more carefully, which is not good for those business I just mentioned. But we need to notice on the other side of equation, as people felt the economic and psychological effects of recession, they pay more attention to their health: both physical and psychological, hence comes the spending on those things. In this Vitamin and diatary supplements business, obviously Vitacost is a low cost provider which match the cost concious consumers’ need.

Other people’s homework (analysis)

(Seekingalpha: Bill Simpson, author of TradingIPOs) IPO Analysis: Does a Great Job Increasing Profits in a Competitive Landscape (you missed this IPO)

IPO home (VITC)

Disclosure: I sold ECHO (last Friday’s IPO) today, and bought some VITC today. Obviously my long postion is subject to change without notice.

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