[stoney]

I've left the bank officially as of Friday. No more guarded commentary, no more abstaining from commentary when really needed. Game on.

Oh, and the SRAM IPO will be marketed as a green tech company with stupid high multiples and probably break price on opening day. I'd also assume that it prices below initial range with low interest. They will be a small-cap company and nobody from my client base (all SMid Cap) would touch them. There is no reality of an increasing market share for them.

 

[IH8Rice]

There is no reality of an increasing market share for them.

none at all?

 

[stoney]

none at all?

It's the biggest fish in a small pond in action. How big is the Global cycling componentry market? Currently Shimano and SRAM make up the vast majority of this relatively static sized market. They have been growing via acquisition and taking up share, but not necessarily market growth.

Once you run out of companies to buy to gain market share, what will they have? They already have a very full book of companies and products. There really isn't that much market growth from which to expand.