Lululemon IPO

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TrueMrP
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Lululemon IPO

Post by TrueMrP » 13 Jul 2007 19:43

What's you opinion on Lululemon coming up IPO. Did anybody look into it in detail?
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Post by randomwalker » 13 Jul 2007 20:42

Clothier Lululemon shrinks planned offering
Fri Jul 13, 2007 1:30 PM EDT

"It could be that there isn't as much of an appetite on the stock," said one analyst, who asked not to be named. The "pretty richly priced" offering has enjoyed a "hype factor," he added.

http://ca.today.reuters.com/news/newsAr ... ived=False

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Post by investor99 » 13 Jul 2007 22:52

I find the company intriguing. I am going to give it a serious look as a speculative investment; not usually my style however I may indulge. It will probably be a difficult one to buy without overpaying though. I am thinking anywhere around $8 is reasonable, while $10 is very expensive.
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Post by lilbit » 14 Jul 2007 00:11

I'm going to wait until after the IPO - sometimes there's a nice retreat in the share price. 8)
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Post by randomwalker » 14 Jul 2007 09:48

lilbit wrote:I'm going to wait until after the IPO - sometimes there's a nice retreat in the share price. 8)
Sounds like a good idea after reading the following in today's G&M. If Lululemon is such a great investment why are the current owners so keen to monetize there investment?

"In all, existing Lululemon shareholders will account for nearly 14.1 million of the 16.4 million shares to be sold in the IPO."

http://www.theglobeandmail.com/servlet/ ... y/Business

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Post by biker » 14 Jul 2007 10:48

I have shopped there for my daughter's xmas gifts.Looks like a one trick pony to me very dependant on the current trend towards yoga and..pilates. This trend could bottom out very quickly imo.
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Post by Operabob » 14 Jul 2007 13:09

I was chatting with someone significant last night and I mentioned how it was "trendy" and a current "fad" (all us boomers with chronic pain) and I couldn't see how they'd have a lock on competition.

He pointed out there are 2 competitors entering the field now.

He, himself, as a Tai Chi teacher couldn't see spending $100 on yoga pants.

OB

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Post by brad911 » 14 Jul 2007 19:56

But remember that their most significant target market is young women 18-35. There is a very passionate brand loyalty among that group and they've shown a willingness to pay a premium for the product. For a person who works in a female dominated workplace, I can accurately suggest that 75% of my coworkers & past classmates owned at least 1 piece of apparel, with university campuses the largest hotspot for the products.

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Post by randomwalker » 25 Jul 2007 21:03

For those interested according to RBC LuluLemon (LLL) has "...increased its IPO range by 50% from US $10-$12 to US $15-$17 per share. The anticipated market cap for the company is $1.3 billion, and the shares are expected to come to market on Thursday, July 26th.
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Lululemon prospects bright after IPO, analyst says

http://ca.today.reuters.com/news/newsAr ... ived=False

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Post by FrugalTrader » 27 Jul 2007 11:32

LLL jumped over 50% this morning in it's IPO debut.

http://www.globeinvestor.com/servlet/st ... 7/GIStory/
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Post by randomwalker » 27 Jul 2007 13:33

brad911 wrote:But remember that their most significant target market is young women 18-35. There is a very passionate brand loyalty among that group and they've shown a willingness to pay a premium for the product. For a person who works in a female dominated workplace, I can accurately suggest that 75% of my coworkers & past classmates owned at least 1 piece of apparel, with university campuses the largest hotspot for the products.
Barnum's Law — You’ll never go broke underestimating the intelligence of the American public. Named for P. T. Barnum

Now where is my pair of Reebok Princess and those leg-warmers I have to go and do my 20 Minute Workout. Don't forget to breath. lol

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Post by bubbalouie » 28 Jul 2007 10:33

It's the year 2000 all over again....
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Post by pitz » 30 Jul 2007 01:25

bubbalouie wrote:It's the year 2000 all over again....
Shawn Allen of Investorsfriend newsletter certainly agrees with you.
Think about this folks. Would you pay $34 million for a small retail store? Remember, I estimated above that sales were about $3.7 million per store in 2006. No-doubt, $3.7 million per year in sales is excellent for a small store. But it can not come anywhere close to justifying a price of $34 million per store.
...
..
This is as bad as many of the dot-com fiasco's of the late 90's and early 2000's.

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Post by jackbauer » 30 Jul 2007 15:12

Wow, all you experts pegged this one right......

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Post by unicef01 » 31 Jul 2007 02:06

their apparel is very popular, however their success has spawned plenty of knock offs and competition.. they all look the same to me !

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Re: Lululemon IPO

Post by kcowan » 07 Dec 2017 15:22

In an apparent resurgence, LULU is again heading towards it all-time peak of $80+ with at least one firm predicting that. LULU renewal.

There was also a piece on BNN today that, if they can withstand an attempt by Amazon to knock them off, they might become a target acquisition like Whole Foods was.
For the fun of it...Keith

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Re: Lululemon IPO

Post by SkaSka » 07 Dec 2017 16:10

I bought 1 men's hoodie and 1 men's yoga pants in 2010 and they are still going strong - I am very impressed with the circa 2010 quality of their products. At this pace, I'm not going to need to purchase those items again for at least another half decade.

I've anecdotally heard over the years that the quality isn't the same anymore.

They also basically created the yoga-athle-leisure market and had a monopoly for a while. There's much competition now with Nike, Under Armour, Adidas, etc. offering similar items.

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Re: Lululemon IPO

Post by kcowan » 08 Dec 2017 07:18

Yes we know some loyalists who still get great value from buying their products. I see the Amazon initiative as the greatest threat/opportunity to LULU yet. Their stock could go to $90 or collapse once again. :roll:
For the fun of it...Keith

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