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Final Followup on Potbelly's IPO.



September 27, 2013 – Comments (2) | RELATED TICKERS: CMG , PNRA.DL , NDLS

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 2ndJim 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?

2 Comments – Post Your Own

#1) On September 27, 2013 at 11:57 PM, p366 (< 20) wrote:

Love Pot Belly.  Thx for the IPO date.  IMO, they could bury CMG.


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#2) On September 29, 2013 at 5:27 PM, constructive (99.97) wrote:

According to this blog the PE range is 13.6 - 16.7 which seems pretty reasonable.

No word yet on IPOdesktop for either.


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