Lyle Stein Freshii Inc FRII-T WAIT Sep 26, 2017

This came out in January at about $11.50. The valuation was about $300 million. To him that was absolutely insane. The company had revenues under $20 million, lots of hope, lots of hype. The people who sold this to clients should have said that the price is way too high. In terms of IPOs, about 90% are down in value about a year later. Often you get a pop at the beginning, and then comes way down. The changes they had were pretty dramatic.

IPO’s are generally fools’ plays. If you buy into an IPO, odds are it is going to be down a year later. It’s great for the people selling. Often the price is inflated as they want to get it out there and make a lot of money. BV is about $1.70. There doesn’t seem to be tremendous value. He wouldn’t rush out to buy this, but it is certainly better value than it was at its IPO.

High profile IPO last year. Have to be careful with them. Small company. Good business model. Great revenue model. The stock is not going up unless there are short-term positive catalysts.

Technically the chart has been in consolidation with highs just over $7. It remains in a sideways range until proven otherwise.

He likes the business but is tricky. It was so hyped at IPO. It is still a very small company. Was predicated on very aggressive growth, but disappointed the street. Should bottom within the next year. Still has some fundamental building to do. Likes business longer term, but at this point is dead money.

It's struggled for a while. He knows it very well. When it was private, it was a great growth story. The valuation at the time of the IPO was ludicrously high with unrealistic growth expecations. He still feels this way.