In this article, I present the case that Fairway Market (FWM) is a typically overhyped IPO issue that has overly optimistic growth prospects already priced into the stock. Currently trading at a market cap of ~$1.16 billion, the company is losing money, burning through cash and finds itself saddled with enormous amounts of debt. I will make the argument that, based on Fairway's current performance and future prospects, the payment of such a large premium for anticipated future growth is unwise. Furthermore, the company is being controlled by a private equity firm whose interests may not be completely aligned with those of the outside shareholders. Fairway's share price is grossly inflated, and investors should take heed before...
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