Lululemon Athletica inc. (NASDAQ: LULU) is having an incredibly strong time in the market at the moment. In fact, minutes ago, a rumor broke that caused the stock to start spiking. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:18), LULU is trading at $56.20 per share after a gain of $1.16 per share (2.11%) thus far today.
LULU Gains On Going Private Rumor
As mentioned above, Lululemon Athletica is having a great time in the market as we speak. The reason is relatively simple. A rumor broke minutes ago that the company is going to be going private. The rumor is relatively vague, but a price is offered. It suggests that the company will go private at a price of $85 per share. However, there are no other details offered through the rumor.
It’s important to keep in mind that this isn’t the only rumor we’ve seen in the market recently. In fact, it’s not the only rumor surrounding LULU that we’ve seen. The truth of the matter is that rumors happen in the market all the time, and very few of them ever prove to be valid. While this particular rumor seems to have some validity, I wouldn’t get my hopes up, and neither should you. With that said, If you’re going to trade based on the rumor, please be sure to do so with caution.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping an incredibly close eye on LULU. In particular, we’re interested in following the rumor surrounding the company. While we don’t believe that it’s going to come to fruition, if the company does indeed go private at $85 per share, it would mean that exceptional value would be returned to investors. We’ll continue to follow the story closely and bring the news to you as it breaks!
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