Lu Lu Lemon?

Written as Lu Lu Lemon’s IPO came about in 2007. I have learned a great deal more about IPO’s since then. The biggest suckers, are usually the people who buy it on the first day of IPO. It struck at $17 and is now worth over $300. It was a worthwhile investment to buy and hold (in hindsight).

So it’s rare that I talk about investing in specific stock on this site. My ability to pick a loser in a one-horse race is world-renowned. My daughter and wife both mentioned that Lu Lu Lemon (a store for Yoga and Athletic ware for women) was going public. They are looking to raise $230M with this IPO. This is the first IPO in a while that seems to be causing a bit of a stir on financial pages. Not since Tim Horton’s went public have I heard much about any IPO’s, other than in the business rags. Their abbreviation on the Toronto Stock Market will be LLL if you are looking for it.

As with any investment, you need to do your homework. Figure out whether this is a worthwhile investment in the long run (for the sake of your portfolio, don’t buy this solely because I talked about it). IPOs always worry me as well, since on the first day, there is lots of HYPE and EXCITEMENT, which usually (but not always) will drive the price of the stock up, only to have it drop back down in a “hangover” in the next few days.

Am I going to buy this stock? I don’t know. I will watch it, that is for sure, but given that I am not going to get in on the IPO itself, I think it’s prudent to “wait and see” on this one, but add it to your “watch lists.”

Gas prices continue to hover around $1.10/litre these days. We might need some active wear since we might be walking a lot more in the coming months!