Michaels' IPO is no GoPro

 Michaels' IPO is no GoPro

Credit: AP

FILE - This Aug. 23, 2006 file photo shows A Michaels store in Philadelphia. The arts and crafts chain's initial public offering on Friday, June 27, 2014, is expected to test investor enthusiasm for the crafts business in light of competition from the Web and big discounters. (AP Photo/Matt Rourke, File) ORG XMIT: NYBZ125

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by Matt Krantz, USA Today

khou.com

Posted on June 27, 2014 at 2:10 PM

Michaels (MIK), the largest arts and crafts seller in the U.S., saw its shares start trading for the first time Friday. Missed it? Don’t worry — after the fuss over GoPro (GPRO), other investors did, too.

Shares of Michaels are barely pulling ahead of their $17-a-share offering price, hovering around $17.10 in midday trading. The weak trading is happening even though the shares were sold to initial investors at the low end of the expected price range of between $17 and $19 a share.

The deal, though, gives Michaels a market value of $3.5 billion, which exceeds extreme-sports camera maker GoPro’s $3 billion market value at its offering price of $24 a share.

But Michael’s market cap edge over GoPro didn’t last long. Thanks to a powerful two-day rally, leaving GoPro’s shares at $38.06 at midday trading, the camera maker is now worth $4.7 billion.

So the bottom line: If you’re going to go public, don’t compete with a company that sells cameras used to make videos of skateboarding dogs.

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