Gladstone Investment

Trade a viral private toy through its public parent holding company

NeeDoh squishy toys went viral among schoolkids, and their private maker sits inside a listed holding company (ticker GAIN) that owns about 27 small businesses. Camillo bought the parent, betting one hyperviral product could move its valuation 30 to 40%.

“So, so Neato is a very tiny private company that's actually held by another private company that owns, I think, 27 private companies. And Neato, the company that owns Neato, is one of those 27 companies. What's interesting is that this is a holding company that generally doesn't move because they generate their earnings from interest payments and dividends paid by these small operating companies. To my knowledge, and the ticker is GAIN, to my knowledge, they've never owned a company that has had a hyperviral product like Neato before.”

Steal thisWhen a viral product's maker is private, check whether a public holding company owns it and how much the hit could move that parent's earnings.