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DRB1234

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  • Lululemon's losing streak extends [View news story]
    With almost a $700MM cash hoard why not take about $200MM (or more) and buy back stock? They would overnight increase their EPS and reduce that PE further. Would also demonstrate that LULU believes the stock is a bargain sending a positive message to the markets and stakeholders. As an alternative, they could pay a 1% dividend to start, cost them about $66MM per year and continue to build their cash balance or pay a higher dividend. Either of these two would draw more interest to the stock/company. Still a believer in the brand, just becoming impatient. I think "Daughter mgs." means his/her daughter manages more that one store or is a corporate manager of store sales and store sales are good. The times I've visited the lululemon store in my area this seems to be true.
    Best of luck impatiently long LULU.
    May 3 11:24 AM | Likes Like |Link to Comment
  • Plug Power, Ballard Power, FuelCell fall as peer files for bankruptcy [View news story]
    Kind of painting with a broad brush aren't you? Who are the "rest of us"? What is an "old timer" BTW? Really a mindless comment.
    May 2 06:12 PM | 2 Likes Like |Link to Comment
  • Analysis: Comp sales a concern at Lululemon [View news story]
    That's what makes a market buyers and sellers with differing views on a company's future prospects. I think it was the CFO that commented on slowing comp sales some of which had to be attributable to weather. Based on average earnings estimates and current share price LULU 2015 PE is approx. 23; UA on the other hand is 53! Somebody better buy it before it takes off...or maybe LULU will be the buyer. We'll know by 3/27.
    Mar 19 10:21 AM | Likes Like |Link to Comment
  • Analysis: Comp sales a concern at Lululemon [View news story]
    As stated previously, time will tell but I'm going to patiently (maybe stubbornly) stick with this one. I'm placing a pretty big bet, so keeping my fingers crossed.

    I like the brand and the new management. The one time charge from the pants fiasco last year was in excess of $65M; all things being equal, they should therefore be $65M ahead of last year's number's right out of the chute. If you've been to their web site and stores, you'll find that they sell more than women's yoga pants; quite a bit more actually and the web site is first rate. Their men's line is nice too. IMO they've taken steps to address all of the issues that have caused the stocks poor performance. The numbers they report on 3/27 will be important and finally put this year behind them. More importantly, their guidance will be my focus. I have never seen a more pristine balance sheet. Buy at these prices. Best of luck to all LULU holders.
    Mar 13 11:53 PM | 1 Like Like |Link to Comment
  • Analysis: Comp sales a concern at Lululemon [View news story]
    Poor form indeed and the stock has yet to recover because of this CS report. Thank you for your comments I don't think the CS view should be accepted at face value; too many contradictions. I would think they would review their conclusions more carefully...it's as if the previous statements never took place.
    Mar 4 02:11 PM | Likes Like |Link to Comment
  • Analysis: Comp sales a concern at Lululemon [View news story]
    Reply to Packer Fan and Stan Ackman

    I've tried to find the report but haven't had much luck (could you post the link please?)

    I did however find these comments from Sept 13, 2013 SA site. I realize this is before the comments by Chip Wilson which I think have been overstated as far as the affect it has on this company. He said something politically incorrect (probably true) but offensive nonetheless, and the financial media which for the most part is as liberal as all other media just constantly and continually resurrects it in order to pound this company...enough already. They have addressed all of these issues but it never seems to satisfy all the talking heads in the financial press. New management has not been given a chance, just keep pounding away.


    Lululemon climbs on Credit Suisse upgrade, while Stifel lowers PT

    Sep 13 2013, 14:40 ET

    Shares of Lululemon (LULU +3.8%) climb after Credit Suisse upgraded the athletic apparel maker to Outperform from Neutral while maintaining a PT of $78.
    Analysts Christian Buss and James Berkley believe demand will bring about strong Q2 results while inventory flow issues will "moderate over the balance of the year and reverse in 2014." Lululemon is "compelling given rich valuation and signs of decelerating sales trends for the group as a whole."

    Stifel Nicolaus analyst Jim Duffy took the opposite stance, lowering his PT to $80 from $85 while maintaining a Buy rating. He is less optimistic on inventory problems and expects delays to continue into FQ4. "While our checks have shown frequent incidence of stock-outs on core pant styles suggesting supply remains too tight for demand, comp deceleration coincidental with deceleration noted across the retail landscape suggests Lululemon is no longer transcending the environment."

    I think what is fair to say is that Credit Suisse comments can move the stock price.

    And then there is this from a Dec 10, 2013 Vancouver Sun article note the quote from the same CS analyst and this is just a couple of months ago.

    "Hiring Mr. Potdevin to helm Lululemon “puts the business under the control of an executive who has demonstrated the ability to successfully manage two cult brands,” said retail analyst Christian Buss of Credit Suisse, lauding the announcement as a positive move."You can read the entire article here:

    http://bit.ly/OLrkBd

    Credit Suisse is all over the place on this company and their opinions change almost monthly it seems.

    As stated by many others, from the stores they visit (I've done the same where I live and have spoke to several employees) they seem to be very busy and most of the customers I saw in the store I visited were buying. I don't know, but it seems with the financial strength that this company has, the new management and the quality issues they've addressed they have a very bright future. They are funding all of this growth with no debt and they still have more than quarter of billion more cash than UA! And remember there is no national advertising (maybe that's the reason for the cash disparity) This will be a very compelling story in my opinion as it continues to unfold. Only time will tell but my bet is with this brand.
    Feb 28 07:58 PM | Likes Like |Link to Comment
  • Analysis: Comp sales a concern at Lululemon [View news story]
    Looks like pure stock manipulation. All good news recently then out of the blue this "investment firm" makes these comments...no facts or research to support the accusation. Makes one wonder about their motivation. Could it be they have shorted the stock and want to cover at a lower price or want to get in before the train leaves the station...time will tell.
    Feb 28 10:46 AM | Likes Like |Link to Comment
  • Lululemon Athletica: A Good Investment For The Long Term. [View article]
    I posted this in response to the SA Lululemon Athletica's 2013 Performance: Was It Really That Bad? article. Copied and pasted into this LULU article.

    I'm not sure what I'm missing but the financial facts are very compelling and am not sure why this stock is not taking off. I know they had some bad PR and a pants fiasco but that has to be factored into the current stock price.

    The numbers below are the most recent posted to the MSN Money web site (http://bit.ly/1cBzEua).

    Keep in mind the LULU numbers include the hits they took for the yoga pants issue which if added back would improve these numbers substantially. I am not sure what the eventual charges were, but I believe they were significant. One would expect those charges to not occur again this year so they should see a corresponding revenue/net income benefit in this year's numbers. Another observation, I've never seen the first television advertisement for lululemon products but consistently see Under Armour and Nike ads. Once lululemon starts to advertise, I think they will see even more traffic than their stores and web site now experience. I have trouble understanding how UA is the higher rated stock based on these numbers. LULU has no debt and over $400 million more in cash! Their margins and ROE are much better than UA one of the competitors everyone seems to think is a threat. There are few if any companies that compete with LULU that can come close to the financial strength outlined below. I wonder why they haven't announced a stock buy back; management must believe they can keep up the growth trend.

    I think it is just a matter of time for the stock to start moving upward again and in an accelerated fashion. I've owned and followed this company for several years thru ups and downs and they seem to consistently under promise and over deliver on their quarterly estimates. I think next quarter results will be remarkable, then it is off to the races unless there is some looming product fiasco unknown at this time.

    Under Armour / LULU

    Rev in billions 2,160,000 / 1,560,000
    NI in millions 148,300 / 279,230
    Net Profit Margin 6.87% / 17.90%
    Return on Equity 17.20% / 30.84%
    Rev/share 20.08 / 10.66
    Earnings PS 1.38 / 1.91
    BV per share 9.15 / 9.05
    Curr/LT Debt 54.10 / -0-
    Free CF millions 149.1 / 186.9
    Cash millions 186.4 / 600.7

    Good luck to all.


    Jan 10 12:49 PM | 1 Like Like |Link to Comment
  • Lululemon Athletica's 2013 Performance: Was It Really That Bad? [View article]

    The numbers below are the most recent posted to the MSN Money web site (http://on-msn.com/1cBzEua).

    Keep in mind the LULU numbers include the hits they took for the yoga pants issue which if added back would improve these numbers substantially. I am not sure what the eventual charges were, but I believe they were significant. One would expect those charges to not occur again this year so they should see a corresponding revenue/net income benefit in this year's numbers. Another observation, I've never seen the first television advertisement for lululemon products but consistently see Under Armour and Nike ads. Once lululemon starts to advertise, I think they will see even more traffic than their stores and web site now experience. I have trouble understanding how UA is the higher rated stock based on these numbers. There are few if any companies that compete with LULU that can come close to the financial strength outlined below. I wonder why they haven't announced a stock buy back; mgmt. must believe they can keep up the growth trend. I think it is just a matter of time for the stock to start moving upward and in an accelerated fashion. I think next quarter results will be remarkable, then it is off to the races unless there is some looming product fiasco unknown at this time.

    UA / LULU

    Rev in billions 2,160,000 / 1,560,000
    NI in millions 148,300 / 279,230
    Net Profit Margin 6.87% / 17.90%
    Return on Equity 17.20% / 30.84%
    Rev/share 20.08 / 10.66
    Earnings PS 1.38 / 1.91
    BV per share 9.15 / 9.05
    Curr/LT Debt 54.10 / -0-
    Free CF millions 149.1 / 186.9
    Cash millions 186.4 / 600.7

    Good luck to all.
    Jan 8 02:19 PM | Likes Like |Link to Comment
  • Rid Your Portfolio Of This (LULU) Lemon [View article]
    Wow how many hits can this stock take? The founder says something really politically incorrect (but probably true) the media seizes on it and suddenly the stock should be sold and crater as a result? How many more stories will be posted about these comments? At least 10 stories so far about this comment YIKES. Seems nonsensical to me; the point has been made. He said something I'm sure he wishes he hadn't said like "If you like your health insurance and your doctor you can keep your health insurance and your doctor...period."

    Unless you are a professional PR person (or a politician) how are you to handle these questions when you are caught of guard trying to defend your company and taught to tell the truth? Today that is not the norm, it is more important to be politically correct rather than truthful. Do not offend anyone's sensibilities. Hopefully this will pass, but so far it hasn't.

    Their products are in a class that their competitors are a long way from matching and think their success will continue regardless of the stumbling blocks either self-inflicted or externally generated. Visit their web site much more positive feedback than negative.

    See below for comparison to one of the stocks repeatedly mentioned as one that is going to take market share **

    Lululemon / Under Armour
    ROE 31.8% / 17.2%
    Gross margin 54.0% / 48.3%
    Net profit margin 18.1% / 6.88%
    Cash (in millions) $590.2 / $341.8
    Debt (in millions) $0.0 / $61.9
    EPS $1.85 / $1.38
    Current PE 37.3 / 57.2

    Politically incorrect comments aside, this is pretty compelling. Assuming the pants fiasco is soon behind them, (no pun intended) any kind of good news should drive the stock substantially higher.

    ** from MSN money web site annual reports
    Nov 10 05:54 PM | 1 Like Like |Link to Comment
  • Hedgeye asks Lulu-who? [View news story]
    from lululemon web site announcing hire looks like a great hire to me...she has the enthusiastic support of the company founder.

    "A seasoned and accomplished retail executive, Ms. Poseley brings 25 years of experience in strategic product development, merchandising and brand management for both large-scale and entrepreneurial businesses, running apparel, accessories, men's, women's and children's categories. She most recently served as President of Kmart Apparel, a multi-channel, multi-category business with several billion in revenue, at which she was responsible for the revitalization of Kmart Apparel and the launch of several new product collections to attract a younger and multi-cultural customer. Previously, she held the position of Interim President at Bebe Stores, Inc, President of Disney Stores North America (The Children's Place), and CEO of Design Within Reach (DWR). Ms. Poseley also held a range of senior merchandising and design management positions during her 15 year tenure at Gap Inc."
    Oct 31 10:05 AM | Likes Like |Link to Comment
  • Lululemon: Keep Calm And Don't Worry [View article]
    I agree with optionsexpert and with all that cash wonder why a stock buy back isn't on the horizon.
    Jun 12 10:25 AM | Likes Like |Link to Comment
  • Goldman's Lindsay Drucker Mann weighs in on Lululemon (LULU -16.5%), calling slowing comp trends a "sign of natural aging" as mature Canadian stores appear "to have neared a ceiling." Although the company may age gracefully, slower growth "could lead to a re-rate lower from LULU's 35- 40x P/E range," Drucker Mann adds. (Earlier: Here come the LULU downgrades[View news story]
    With the cash available this would seem like a good time for a stock buy back
    Jun 11 04:04 PM | Likes Like |Link to Comment
  • Four 3D Systems (DDD) insiders sold nearly 1.3M shares between them yesterday, according to fresh SEC filings. CEO Abraham Reichental sold 400K shares, director Walter Loewenbaum sold 800K, CFO Joe Gregoire sold 45K, and director Jim Kever sold 38K. Co-founder/CTO Charles Hull, 73, sold 500K shares in March. DDD -1% AH after falling 4.4% in regular trading thanks to William Blair's downgrade. Update: The sales are tied to 3D's recent stock offering[View news story]
    Mr. Loewenbaum has over 3.39mil shares according to msn.com selling 800k shares seems like a reasonable thing to do
    May 16 09:18 PM | Likes Like |Link to Comment
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