LULU again??
LULU has been my favorite stock to trade, due to it's volatility and general upward trend (which masks some mistakes). I sold out 2 weeks ago at $80 after doubling the investment, and now the stock is trading down around mid 60's due to the departure of CEO Day. So I've been thinking of jumping back in for my personal portfolio, not the club's.
I'm consulting with my associates since I'm really torn. They recently released really good earnings and outlook, so the discount is really just due to the uncertainty/surprise of the CEO's departure. though it's not discussed much in media, I suspect Day did not have such a great relation with the founder Chip Wilson from the start. If that's the case, I think Lulu still has legs with int'l expansion and such.
Again, I see Lulu as more than just a retailer, but a play on women's vanity and body insecurities. Trying to monetize on basic human emotions and aspirations seems more reliable to me than trying to follow the economic cycle. So should I jump back in??
posted by Junk Bonds @ 6/14/2013 12:07:00 PM
2 Comments:
I followed the CEO Day departure and it doesn't follow the usual script of a CEO retiring or moving on to greener pastures so it was taken as a negative surprise.
I agree with "monetizing basic human emotions", but it's the fear reflected in the drop in LULU that gets my juices flowing! Has anything else changed in this retail landscape like slowing revenue growth? If not, then the best thing that might happen for this stock is for them to announce the hiring of an 'expansionist' CEO. I'd consider taking that jump!
Wow, this blog still works?!?! :)
Scouring the news and forums, I couldn't find any signs for concern. So I'm back in at $66.
As long as I see girls wearing tights outside, I'm staying long.
Boy, researching this stock is hard! :)
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