Chagee IPO Soars Then Sags! Can This Chinese Tea Chain Brew Success in America?

Tea and Treachery Just Another Thursday

Right so the whispers on the street are true. This Chagee outfit a purveyor of tea – fancy that – decided to stick its neck out on the Nasdaq. They were trading on the ticker CHA. Opened at $33.75 a tidy sum I suppose for boiled leaves. Reminds me of the early days of Shelby Company Limited except instead of razor blades we're slinging tea. 'Everyone's a wh*re Grace. We just sell different parts of ourselves.' This lot’s selling a cuppa.

From Birmingham to Beijing Risk is Risk

They priced this initial public offering at $28.00 apparently that was high end! Made $411 million valuing the whole shebang at $5 billion. Numbers don't lie but they can be...persuaded. Six thousand teahouses you say? Across China Malaysia Singapore Thailand...sounds like they're expanding faster than my patience wears thin. And here I am stuck with horses and bloody betting slips. Though if I recall correctly Arthur did once try to sell tea to the local vicar. It didn't end well bless his cotton socks.

Dollar Dreams and Dragon Deals

Now the clever bit. They're heading to the Colonies Los Angeles to be precise. Westfield Century City they say. Bold move considering the state of things between Washington and Beijing. Tariffs flying like bullets in a Peaky Blinder brawl. But as my Aunt Polly always said 'There's God and there are the Peaky Blinders.' And of course there's opportunity. Where there's risk there's reward. And I am a risk taker I suppose.

Starbucks' Shadow

Founder and CEO Junjie Zhang got inspired by those coffee merchants across the pond. China is Starbucks second biggest market. Right now I’m envisioning my own global domination… Shelby Company branded Tea! It's not a bad idea is it? Someone fetch Johnny Dogs; I want him to find out everything there is to know about brewing tea.

The Trump Card

Ah that troublesome Trump card. His tariffs threw a wrench in the works didn't they? Other companies got cold feet delaying their own plays. Makes a man wonder if these Yanks are more trouble than they're worth. But we don’t quit when we are facing a battle eh? As my brother John always said… before… well before he didn't say anything anymore. We push through.

The Tide is Turning

Less Chinese companies wanting to list on U.S. exchanges they say. Numbers fell 5% from last year. The world is changing faster than a Shelby can change a razor blade. But Shelby Company Limited much like this Chagee adapts. We always do. Now if you'll excuse me I have a glass of whiskey and a chess game calling my name. By order of the Peaky Blinders! Time to make some more plans.