Tuesday, April 1, 2014

Are you one of the winners on Textura Corp? (NYSE: TXTR)

Or, like many, are you feeling like a fool ….. on April Fool’s Day?

By now, it’s been nearly 10 months since Textura Corp went public.

Current Quote on TXTR, April 1, 2012, 1:22 pm (per Google Finance)
-$0.42 (-1.69%)

Let’s briefly revisit TXTR’s IPO launch and the secondary offering TXTR managed to pull off only three months after its IPO.

An article on streetinsider.com on June 7, 2013:

“Textura Corporation (TXTR) IPO Rips Higher”

The IPO for Textura Corporation (NYSE: TXTR) opened for trading on the NYSE at $24 per share, after pricing 5,000,000 shares of common stock at a price to the public of $15.00 per share.

Credit Suisse and William Blair are acting as joint book-running managers for the IPO, and JMP Securities, Oppenheimer & Co. and Barrington Research are acting as co-managers.

Textura is a provider of collaboration and productivity tools for the construction industry.

Textura has achieved significant growth since introducing its solutions to the market. In the fiscal years ended September 30, 2010, 2011 and 2012, the company generated revenue of $6.0 million, $10.5 million and $21.7 million, respectively, which represented growth over the prior period of 90.0%, 74.7% and 106.2%, respectively. In those same periods, they had net losses of $15.9 million, $18.9 million and $18.8 million, respectively.

From a note on flyonthewall.com on September 20, 2013:

Textura 4.59 million share Secondary offering priced at $38.00

Credit Suisse and William Blair acted as joint book running managers for the offering.

Blog Publisher’s Comments:

I feel sorry for those who purchased TXTR in the secondary offering.  By now, those who bought and held are behind by, well, a bunch.  Apparently, they got suckered in by all of the hype created around this stock.

Personally, I think everyone at Textura, Mr. Allin (the CEO) included, should concentrate 100% of their efforts on sales, rather than wasting time (any time) on fluffy, inconsequential press releases about companies purchasing Textura products.

If you bought on the first day of trading after the IPO, you’re still ahead, but don’t be surprised if your profit goes by the wayside.  This company is going to have to, at some point in the not too distant future, convince the investment community that it can earn a profit.

From an optimistic perspective, the analysts who report their recommendations on MarketWatch – all five analysts – continue their “strong buy” recommendations on TXTR.

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