So here's my "thinking" given new information today on Lululemon (LULU) ---- and as you all know -- I don't recommend stocks by name -- I use them for examples -- and for you all to kind of gain a small insight of how "I" think when I'm investing. The actual purchases etc are just used for thought process rather than "you need to own or sell this". Forget that! YOU buy or sell what you think fits YOUR criteria and needs!
Today - LuLu announced they plan to open MEN'S stores.... They already successfully sell men's and woman's in the same stores. I buy stuff there.
Now -- UnderArmor and NIKE already have the lions share of MEN'S workout business.... LuLu is considered a WOMAN'S like of workout clothes... I go there because my wife goes there and if I'm with her - I'll shop the 10 men's items and pick up a pair or two of shorts.... but I'm the lone man in the store! Not that I mind checking out the hardbodies inside! LOL
So my guess is that the CEO was against the BOARD on this decision to expand into MEN'S.... and quit over it. She's not going to say that - because you can bet she has a bunch of options on the shares - and has large personal hoard of shares as part of her pay package etc. She's still working there until they find a replacement.
BUT --- Here's the big butt --- and the reason for this post. This is a FUNDAMENTAL change in the company --- and perhaps it's a FUNDAMENTAL change in the reason you'd either buy more --- or sell. This of it as you own Home Depot (HD) and they announced they were going to expand into FOOD.... would that make you happy or would you think they're nuts.
Personally --- I think I'm about as average a guy as there is.... and therefore -- my thoughts are probably similar to others. I'm not smart. I'm not dumb. I'm average. I do average stuff. I wear blue jeans and t-shirts and tennis shoes. Usually with some kind of stain on them. In short - I don't give a sh!t about how I look as long as it's functional.
Would I go into a LuLu to buy without my wife dragging me along? Probably not.
Will I hold the stock and watch how it plays out. Yes. Their sales are stellar... their profits are stellar. I EXPECT that to grow... and that's why I bought in the first place. I don't agree with this decision -- and it's my guess they run some test stores and find out one way or the other before they just blindly open 1000 retail shops (think Microsoft - in their "ME TOO" stores to compete with Apple..... BALMER is an idiot and continues to prove it --- I've thought that since he was a nobody and we used to worked out together. He was dumb then and hasn't changed. The last 11 or 12 years of stock price proves this.)
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