BrightView Could Move Lower When IPO Lockup Expires

The 180-day lockup period for Brightview Holdings, Inc. (BV) ends on December 25, 2018. When this period ends, the company's pre-IPO shareholders and company insiders may opt to sell their shares in the secondary market for the first time. More than 79% of shares outstanding are subject to trading restrictions. If just a portion of these shareholders sold some of their stock, the secondary market for BV could be flooded and the stock could experience a sudden, short-term downturn.

(Source: S-1/A)

Aggressive, risk-tolerant investors can take advantage of this trading event by shorting shares of BV ahead of the December 25th lockup expiration.

Shares of BV have headed lower since the stock's premiere. The stock was priced at $22 and closed on its first day of trading at $21.40 for a decrease of 2.7%. BV has a return from IPO of -52.8%.

Business Overview: Provider of Commercial Landscaping Services

Brightview Holdings is the largest provider of commercial landscaping services in the United States. The company has two primary segments: Development Services and Maintenance Services. The Development Services segment provides development and landscape architecture services for new and redesign facility projects. Its services include landscape architecture, project design, management services, landscape installation, tree nursery and installation, irrigation installation, sports fields, pool and water features, and other services.

(Source: S-1/A)

The Maintenance Services segment provides a portfolio of recurring landscape services for commercial clients. These services include specialty turf maintenance, golf course maintenance, tree care, irrigation maintenance, water management, mulching, snow removal, mowing, and gardening.

The company's clients are typically commercial properties, corporate campuses, public parks, airport authorities, homeowners' associations, international hotels and resorts, municipalities, educational facilities, healthcare facilities, restaurants and retail, hospitals, golf courses, and others. The Maintenance Services segment serves approximately 450 educational facilities, 13,000 corporate campuses and office parks, and 9,000 residential communities.

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Disclosure: I am/we are short BV. 

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with ...

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