In early trading Monday, it looked like it was going to be a strong day for online florist 1800Flowers.com (Nasdaq: FLWS). Goldman Sachs, the lead underwriter of 1800Flowers.com’s IPO, put the stock on its recommended list on Monday morning, while Wit Capital gave the stock a buy rating. Shares of 1800Flowers.com climbed more than two points to 23-3/16, but then the stock fell sharply before closing at 18-9/16, a decline of 2-3/16 overall for the day.
So what happened? Well, it looks like a lot of the buyers who got into 1800Flowers.com’s IPO at the offering price of $21 decided to cash out when the stock passed that level. Considering that 1800Flowers.com is now a bit off its offering price, this might be a buying opportunity. Monday’s sell off seemed a bit overdone, and this company obviously has a strong brand.