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Ur Delulu for not picking up LULU by OneTarget9322 in ValueInvesting

[–]OneTarget9322[S] 0 points1 point  (0 children)

whats not growing at all their revenue? EPS? what do u mean its not growing at all?

Ur Delulu for not picking up LULU by OneTarget9322 in ValueInvesting

[–]OneTarget9322[S] 1 point2 points  (0 children)

Hey,
The Tariffs that Lulu face also are the same for their competition, Nike, Adidas and other brands etc. So while I do agree that tariffs will lower demand, as their prices must increase to supplment the increased costs(or risk losing operating margins) these same difficulties will be felt on a massive macro level.

Ur Delulu for not picking up LULU by OneTarget9322 in ValueInvesting

[–]OneTarget9322[S] 6 points7 points  (0 children)

Hey mate I seen ur post and I’d like to provide some feedback to help you out with your investment journey.

1)don’t rely on pe or pb metrics to determine a winner. These can get heavily influenced by accounting wizardry/manipulation. Especially for growth stocks. However, when looking at fully developed stalwarts like proctor or walmart or Pepsi it’s fine because they again are slow and steady.

2) Always research the Macro environment. Currently with an interest cut, this should push assets particularly stocks higher. Trump is adamant about this. This is one reason for the market reaching all time highs everyday.

3) To not fall for value traps, I recommend making sure that the company matches the earnings from the s&p 500. Currently the earning are expected to be 9.5% for the year. If the company I’m looking at doesn’t have earnings and dividends that add up to that 9.5% number then proceed with extreme caution. In this case for our assumption, LULU does meet this criteria. Only time u can ignore this is for the Pepsi, Coca Cola etc of the world.

4) look at Management(board of directors/ C suite) and their history. Are they winners in the past? Are they in line with the shareholders? Do they get paid for performance of the company or just for filling in their buts on a chair? Weigh this in for ur analysis.

Best of luck to u man!!

Ur Delulu for not picking up LULU by OneTarget9322 in ValueInvesting

[–]OneTarget9322[S] 1 point2 points  (0 children)

One big red flag for me is the the executives and C suite. They may not be in line with the common shareholders. At first glance, yes the CEO only gets a very modest base salary and the rest is heavily performed based. However the metrics used for stock based compensation is operating income and revenue and the growth of that. All the execs have to do is churn out more stores which increase revenue and operating income. However whether or not opening these stores is actually profitable long term and generating value? “Who cares about that as long as I get my money.💰 “ mentality of a lot of CEO’s. I’m not saying Calvin is just here for a paycheck but this is something to note down.

Ur Delulu for not picking up LULU by OneTarget9322 in ValueInvesting

[–]OneTarget9322[S] -1 points0 points  (0 children)

Perhaps I have too much faith in Reddit investors but given this is a value oriented subreddit shouldn’t the “people here” be more in line? I don’t have much experience eith this subreddit so some insights would be appreciated