GNC: A Vitamin Stock IPO I Just Can't Swallow
"Third Time's the Charm" is apparently a phrase General Nutrition Centers (GNC) lives by. After two failed attempts at taking the company public, the management of GNC is hoping to finally bring the company public. However, I do not believe that the stock of this vitamin and supplement company will make your portfolio stronger.
THE HARD NUMBERS
GNC [Proposed ticker (GNC)] is a chain of stores that specializes in the sale of health and specialty nutrition products. The company originally filed for an Initial Public Offering (IPO) twice while owned by Apollo Management, first in 2004 and again in 2006. Each time, GNC withdrew the IPO after weak investor demand.
The company's new owners, the Ontario Teachers' Pension Plan (OTPP), is again attempting to take the company public, this time to the tune of 22.5 million shares priced at between $15 and $17, on March 31, 2011. Could the third attempt finally mean success?