Last week, fellow Fool Rick Munarriz commented on BabyUniverse's
The infant-centric retailer reported a loss last quarter, and with the release of its second-quarter report (its first report as a publicly traded company), BabyUniverse has even more ground to make up. Despite strong revenue growth of 90.7%, it posted a loss of $322,200 for the period.
In some ways, the company's IPO reminds me of Motley Fool Hidden Gems selection RedEnvelope
An enterprise can have a good idea, and even a decent strategy to realize that idea. But operational performance ultimately determines a company's profitability. As RedEnvelope continues to disappoint its shareholders, it'll be interesting to see if BabyUniverse can achieve its stated goal of both organic and acquisition-fueled growth while functioning profitably. In the end, we Fools want investments that grow, but we also want those investments to produce cash.
BabyUniverse wants to be the last word in baby-specific shopping. Much like Children's Place
Now, if it can consistently turn its cradles into cash, we might have a Foolish investment worth our hard-earned dollars.
Toddle over to these related Fool Takes:
Someday, even the littlest companies might grow up to be big performers. Find them while they're learning to crawl with a free 30-day trial subscription to Motley Fool Hidden Gems , your guide to the best small-cap stocks on the Street.