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May 11, 2014
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Sl1903 wrote:
Feb 16th, 2017 11:30 am
http://www.calgaryherald.com/canada+goo ... story.html

Does anyone know when their shares go on the TSX? Will anyone here be buying or watching?
You need to be very careful about IPOs in apparel and popular things. It is a way for the original owners to cashout their gains as they sell the company out. This is usually done at the peak of their business so they get the most money.

Good example is Fitbit. Compare the initial IPO and the price today.

Any gains will be minimal at best and if anything, you will likely not get anything.

Canada Goose is popular, but really overrated. It is fashionable at the moment. Who knows what the future demand is, but likely less than now. Even in places like Iqaluit, it is just an overpriced coat. I buy cheaper parkas from MEC, or Columbia, any these brands are still expensive.

I would avoid or be prepared to sell right away.
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Oct 9, 2008
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xgbsSS wrote:
Feb 16th, 2017 3:39 pm
You need to be very careful about IPOs in apparel and popular things. It is a way for the original owners to cashout their gains as they sell the company out. This is usually done at the peak of their business so they get the most money.

Good example is Fitbit. Compare the initial IPO and the price today.

Any gains will be minimal at best and if anything, you will likely not get anything.

Canada Goose is popular, but really overrated. It is fashionable at the moment. Who knows what the future demand is, but likely less than now. Even in places like Iqaluit, it is just an overpriced coat. I buy cheaper parkas from MEC, or Columbia, any these brands are still expensive.

I would avoid or be prepared to sell right away.
I don't know too much about fashion trends but I think that Canada Goose fad has already peaked as well.

Good example with Fitbit - the CEO is a classic example of a CEO who is terrible for shareholders except for himself and his own companies internal shareholders. I got burned on a Fitbit ER play last year and the ER turned out to be a huge beat but the CEO announced a massive increase to internal shareholders being able to sell more stock which made the AH reaction reverse and the trade went sour.
Last edited by Jeenyus1 on Feb 16th, 2017 4:32 pm, edited 1 time in total.
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Jeenyus1 wrote:
Feb 16th, 2017 4:32 pm
I don't know too much about fashion trends but I think that Canada Goose fad has already peaked as well.

Good example with Fitbit - the CEO is a classic example of a CEO who is terrible for shareholders except for himself and his own companies internal shareholders. I got burned on a Fitbit ER play last year and the ER turned out to be a huge beat but the CEO announced a massive increase to internal shareholders being able to sell more stock which made the AH reaction reverse and the trade went sour.
Yes, and people tend to get attracted to these IPOs because of their name initially. That's what these private companies hope for when they go for the sale.

I tried shorting Fitbit last year, but Virtual Brokers has a hard time fulfilling short US shares.

GoPro is another example. So much promise, but more established camera players are going in such as Sony and Panasonic. The fad also has ended too.
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aptsauga1 wrote:
Feb 16th, 2017 5:35 pm
What's the best way to subscribe to ipo price ?
If your broker offers you to bid into IPO, you subscribe for the shares that way.

It is still too early to. The news has just announced that they made an application to do so. This may still be months away.
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May 18, 2016
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Appreciate the responses, ill be staying away!!!
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Dec 6, 2006
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I really don't understand CG... or rather, people who're so into CG. The stores aren't even on sale and people are lining up like crazy... rushing into the stores and grabbing MULTIPLE overpriced coats. It's like zombies trapped with fresh meat. And they all look pretty much the same for crying out loud....
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Oct 4, 2006
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Jeenyus1 wrote:
Feb 16th, 2017 4:32 pm
I don't know too much about fashion trends but I think that Canada Goose fad has already peaked as well.
I feel the same, but it may be just from our Canadian perspective...we see it everywhere.
I know Canadian made apparel is quite popular in Asia...so maybe it still has legs.
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As an anecdote, I laughed when film crews were visiting us here in Iqaluit. It was -5 in September, but they were all sporting Canada Goose. I was laughing because they were in the Arctic, they have to sport the Canada Goose :facepalm:

Sadder still, likely funded by Government of Canada film subsidy, so us tax payers likely paid for some of those coats Angry Face
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Nov 21, 2016
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I laugh all the time when I see women around in the city wearing Canada Goose jackets. If I were to receive one as a gift or on a big sale, the first thing I'd do would be cut off the logo. It screams "I'm a sucker".
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blindemboss wrote:
Feb 17th, 2017 1:00 pm
I feel the same, but it may be just from our Canadian perspective...we see it everywhere.
I know Canadian made apparel is quite popular in Asia...so maybe it still has legs.
I would disagree. The value for shareholders would have to be in continued sales. The thing with Canada Goose is once people buy them, they don't need to buy another one unless they lose them (Oakleys) or there is an improvement in the next lot (eg. Apple iPhones). There is just limited reproducible sales in the same customers. Management/Owners realize this and are probably selling out so they can get the most money out of their stakes.

Otherwise, why would insiders be selling out shares now? If it was so profitable, wouldn't they want to own all the equity? It's not like they are going to expand the company, hence selling shares in an IPO... my guess is they're cashing out.
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Feb 1, 2015
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Some additional info provided in the preliminary long form prospectus available on Sedar.

On December 9, 2013, Canada Goose sold 70% of its equity interest to Bain Capital, a private equity capital firm.

The # of subordinates shares to be issued is still unknown. However, "any Class A multiple voting shares that are sold by the selling shareholders as part of this offering will be converted into subordinate voting shares prior to the closing of this offering".
Bain Capital currently owns 100 million Class A shares, and a 1-for-N split of these shares is a also possibility.

Other notes :
Management Agreement

In exchange of business consulting services, Bain Capital receives a quarterly fee equal to 0.4% of CG total revenue.
...
The Management Agreement will terminate pursuant to its terms upon the consummation of this offering, at which time we will pay the Manager a lump sum amount of $9.6 million. The indemnification and exculpation provisions in favor of the Manager will survive such termination.
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Nov 9, 2013
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I would avoid.

i) IPOs benefit insiders and investment banks, not investors. Would you buy a car from a car salesman they can list, but you know very little about the actual specs of the car?

ii) Fashion is fickle. Tastes change. What will you do with your Canada Goose stock when the inevitable happens?
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