fashion design stock

This one could fall away and may be worth sitting well under. Hit 13c low on listing. Now 17c. May have a chance from a fundamental perspective as well. Costarella holds a sizeable amount of the registry. Used to vaguely know this guy when he was a teenager - he was always going to be a successful designer - a few frocker here and there in the right places just might se this one zoom - high risk trade atm. Not holding.

http://www.aureliocostarella.com

Costarella has unfashionable ASX debut
Monday Mar 19 16:46 AEDT

Couture fashion house Costarella Designs Ltd has had an unsteady reception on the financial catwalk, following a $1.9 million float.

Shares in the Perth-based company, which counts Australian actress Melissa George as a shareholder and whose dresses have adorned fellow big-screen sirens Naomi Watts and Cate Blanchett, fell as much as 35 per cent in its first day of trade on the Australian Stock exchange.

Opening at 19 cents, one cent below the 20 cent a share issue price, and its highest point throughout the day, the stock dipped as low as 13 cents.

It closed down four cents at 16 cents.

Costarella non-executive chairperson Patti Chong said the fashion house had a long term view and was not disappointed with its initial outing.

"In this market of boom times, I think people are looking for mining stocks ... and probably not many people see fashion as something that's going to make them money, particularly not in the short term," Ms Chong said.

"But it's a long term plan that we have."

The company undertook the initial public offer (IPO) to accelerate the international launch of its Aurelio Costarella and Aurelio Costarella Couture labels, namesakes of Western Australian designer Ray Costarella, who has been involved in the industry for about 23 years.

Offering up to 11.25 million shares, the group hoped to raise up to $2.25 million in the IPO.

However, it fell short of the target, raising just under $1.9 million.

Mr Costarella will hold onto a 40 per cent stake in the company.

"Ray's focus previously was in Australia and for him to develop on the world stage, it (the float) was the way that we ... had to go," Ms Chong said.

She said the company would use the funds raised to develop new products, including branching into body care, cosmetics, and accessories, and to build its brand and presence in more international markets, particularly the United States and Europe.

But Costarella is not looking to open outlets.

"We have appointed an agent in America to sell our range," Ms Chong said.

"At this stage we are not looking to have stand-alone shops, we will be selling through retailers in the States."

Los Angeles-based actress Melissa George, who holds 1.11 per cent of the company and is among its top 20 shareholders, had a long association with Mr Costarella, she said.

http://optuszoo.news.ninemsn.com.au/article.aspx?id=255412