The market had no problem downing
Vitamin Shoppe (NYSE: VSI) last week. Shares
of the vitamin retailer that were originally expected to
price between $14 and $16 a stub hit the market at $17 a
share on Wednesday.
It was still too low. The stock hasn't traded below $17.35
during its first four days as a public company.
Vitamin Shoppe is an intriguing IPO on a couple of
different levels. For starters, it's the first
bricks-and-mortar retailer to go public since
Lumber Liquidators (NYSE: LL) hit the market
nearly two years ago.
The chain's successful debut also comes a month after the
previous month's
lukewarm receptionfor Web-based competitor
Vitacost.com (Nasdaq: VITC). The online
retailer of wellness and beauty care products is trading
substantially lower than its initial $12 a share price
tag.
Vitamin Shoppe and Vitacost have been growing during the
recession, likely explaining why the two vitamin sellers are
part of razor-thin pool of companies that have gone public
this year.
Vitamin Shoppe's bottom line is growing faster than its
top line. Through the first six months of the year, revenue
and earnings are up 12% and 56%, respectively.
The chain is poised to capitalize from cyberspace as well;
it runs VitaminShoppe.com and BodyTech.com as direct sales
outlets. It also distributes mail-order catalogs. However,
it's a bricks-and-mortar concept at its core, with 434 stores
and counting throughout the country.
Investor interest bodes well for
NBTY (NYSE: NTY) and
drugstore.com (Nasdaq: DSCM), vitamin and
nutrition specialists that analysts also see growing this
year. If the trend to healthier living is about more than
just popping pills, fitness club operators
Life Time Fitness (NYSE: LTM) and
Town Sports (Nasdaq: CLUB) could also be
recipients of investors' largesse.
Could it be as simple as that: The key to a healthier
portfolio rests in the companies out to make a healthier
you?
Have you bought into any of the IPOs of 2009? Share
your thoughts in the comment box below.
This article was originally published as
A Healthy Portfolio With Healthy Profitson
Fool.com
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