Lululemon continues to plug in the water
Lululemon has been challenging my mental qualities.
As soon as I bought it, it dropped, and then it went down when I bought it.
I went out for a walk on the weekend and came to think back.
1. It is now on the eve of interest rate cuts. I personally believe that once interest rates are cut, people's spending power will be liberated, and consumer stocks will return to power.
2. Lululemon still has great potential for international expansion, and it is a long way from being full.
3. Lululemon's pricing/ quality should be nearly unbeatable; you think it's expensive; that's your problem. Others have been saying that there are other cheaper alternatives; Lulu is going to fall.
In business, there will always be people who are cheaper than you, and there will always be other competitors.
4. The recent reduction is due to other investment banks lowering Lulu's target price, which has nothing to do with its fundamentals.
5. PE is now at a low point in nearly ten years, which is a bit unbelievable. Is it going to collapse?
I just want to use this post to remind myself to focus on my long-term goals and ignore other noises; I just need to wait for Dongfeng to return!
#lululemon
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Caleb Jren : ive been buying lulu as it goes down if you observe the broad markets been selling off and the consumer sector has been selling off too even ulta beauty has been free falling no need to panic just think long tern gains and lulu is at its cheapest price in a long time. wealth is made when nobody dares to buy
MiddasHBK : This stock was way overvalued and it's time reality hits. How low it hits, I'm putting my cards in the 220 range
大马吉米 OP Caleb Jren : Agree
我也暗示 : I've been following Lulu because I'm a user in his family. I bought it in Australia, and the main base is still North America. However, the North American market is shrinking, and the Asia-Pacific economy is weak. In particular, the expansion of the Greater China region is actually not good. I suggest you don't overestimate this ticket; he seems to have gone through the company's growth and maturity period.
Caleb Jren 我也暗示 : No for sure there are uncertainties in this consumer market currently even with LVMUY and ULTA but I am looking over a 5 year horizon and the rotation and cycle just goes against consumer stocks currently which is why they’re cheap. With time I believe they’ll pick up again
大马吉米 OP MiddasHBK : Ya and when this stock hits 500, everyone say its undervalued![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
大马吉米 OP Caleb Jren : When the share price performance is bad, everyone will say how bad is the outlook etc, with various reasons and pessimism. High interest rate environments indeed tampered the overall consumer spending while we are at tier end of interest rate cycle, the change of economic cycle or investment theme might be a stimulus to the segment.
Again, not to forget if the recession comes, lulu for sure will be hit again. Embrace the impacts and invest at our comfortable zone and wait for the time to pick up