Final Followup on Potbelly's IPO.
This is the final update for the two IPO's I've been closely following: Potbelly (NASDAQ:PBPB) and Re/Max (NYSE:RMAX). The dates for the IPOs are officially set. Potbelly's IPO is coming out on October 4th. Re/Max is coming out October 2nd. Jim Cramer, interestingly, says to stay away from Re/Max and buy Potbelly.
I usually don't follow Cramer that much since I'm more of a long-term value investor while he typically short-term and emotionally focused. But with RMAX set at $19-$21 and PBPB at $9-$11, I'm kind of tempted to snap up some PBPB shares since PBPB seems pretty cheap at that price. I still do, however, believe more strongly in RMAX's stability long-term. Even if PBPB appreciates faster than RMAX, I do think that RMAX is more wisely allocating its IPO proceeds to further solidify the company's strong position in real estate for the long haul.
I'll probably kick myself in a year for not buying PBPB, but I need to stick behind my investment thesis (see link) and remember hindsight's 20/20! :)
What do you guys think? Which company would win your investment dollars? RMAX or PBPB? Or maybe both?