Monday, May 07, 2007

Lululemon Public Offering Drawing Interest And Ire


Judging by the results of Google Analytics, there are lots of people curious about Yoga Lifestyle retailer Lululemon's pending Initial Public Offering. Conversely, I recieved a fair number of rude comments from my correspondents about the IPO. The best one by far was:



Wow. Chip and co. have blatantly called the market top for hundred dollar yoga pants. Now that the cow is thoroughly milked, it's time to cash out and find a bigger fool to buy the brand. Apparel trends surf a wave, and this one is due to crest.



Mixed metaphors aside, that correspondent is not alone in murmuring discontent about the prospects of a small Canadian retailer fuelling agressive expansion through public equity.


And just how much expansion will it buy exactly? From the Globe and Mail's Streetwise Blog:


Very little of the money raised from the stock sale will go towards building the chain, with just $25-million earmarked for the company. The rest of the stock is being sold by the company’s current owners, who include Mr. Wilson and two private equity funds, Advent International and Highland Capital, both based in Boston.


So, if it looks like a payday, and sounds like a payday, would you mistake it for a business plan?





*The content contained in this blog represents the opinions of Mr. Distad. This commentary may contain forward looking statements. This commentary in no way constitutes a solicitation of business or investment advice. If you're looking for stock picks from me, look somewhere else. Really, what were you thinking? This blog is intended solely for the entertainment of the reader, and the author, and not neccessarily in that order.

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1 comment:

Charles Farley said...

Dear Lee,

I am glad to see that you are posting a disclaimer on your site. It shows that those persons who take themselves too seriously are starting to take you seriously. But seriously, WTF don't those who take themselves seriously need to understand that not getting coverage is a fate worse than bad coverage (unless you are a hedge fund).

They need to embrace their inner Paris Hilton (read: attention whore) and accept the fact that Anna Nicole's death is no excuse to stop reporting about her.

Respectfully,

Charles U. Farlesyn