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Sometimes a recent IPO or spinoff brings with it profits for all parties involved. The stock goes absolutely bonkers and everybody makes a killing. But then there are others that fall flat on their faces and struggle to get up.

Today’s Bear of the Day is David’s Tea (DTEA - Free Report) . I know what you’re thinking, “But David, it’s your tea.” True, talking bearish about my namesake feels weird but come on people, you know I’m a coffee drinker. The company operates as a retailer of specialty tea in Canada and the United States. The company offers approximately 150 loose-leaf teas, pre-packaged teas, tea sachets, and tea-related gifts, accessories, and food and beverages in the white, green, oolong, black, rooibos, and herbal tea categories. As of May 24, 2016, the company owned and operated 198 David’sTea stores throughout the United States and Canada. It was founded in 2008 and is headquartered in Mount-Royal, Canada.

At first glance you can see the nasty dip that shares took from the jump. The stock tumbled from $27 in June 2015 to $9 earlier this year. Along with this tumble in share price you can see the lowered expectations. Here in our price, consensus and EPS surprise chart you can see estimates for 2015, 2016, and 2017 consistently fell quarter after quarter. The only silver lining is the growth prospect year over year. If this growth can manage to manifest itself then perhaps shares of DTEA have indeed found themselves a bottom over the intermediate term.

Recently, however, shares seem to be butting up against heavy resistance at $14. Shares were virtually pegged at this level, dipping late last month to just below $13 before catching another bid. The commodity channel index came from -300 up through the zero line which should have given a “Buy” signal to technical traders. Problem is that wasn’t met with enough buying power to get shares over the hump, with the CCI now stalled out near 45.

Investors looking for other ideas in the same industry should take a look at a couple of Zacks Rank #2 (Buy) stocks in Fomento (FMX - Free Report) and Primo Water (PRMW - Free Report) .

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Primo Water Corporation (PRMW) - free report >>

Fomento Economico Mexicano S.A.B. de C.V. (FMX) - free report >>

DAVIDsTEA Inc. (DTEA) - free report >>

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