The experts preach to invest in what you know. Okay, so they caught me. I don’t know a thing about wireless technology patents or solar grade silicon which is what I invested in with Wi-Lan and Timminco. Trying to become a better investor, I decided to give this edict a shot. I reached deep down into my bank of knowledge and came up with… shopping.

I’ve been following the lululemon story recently. For those of you not into the yoga or pilates craze, this company specializes in athletic-wear for that niche market. Niche markets are always good, and it has that healthy living, West coast vibe to it. It had its IPO at $18 US/sh last Friday on the NASDAQ, and it promptly jumped over 50%. Obviously there is a lot of excitement but I’m waiting for the dust to settle. How well will they handle expansion in the US? Who is on their management team? Do I trust someone named “Chip”?

The biggest kicker is that I personally don’t own a piece of lululemon clothing. A hundred bucks for a pair of sweat pants is a bit much so their products do not resonate with me. I think there are more interesting plays in retail.

Personally, I’m keeping my eye on Reitmans as I shop there occasionally along with the Smart Set and RW&CO under its company umbrella. It has been a model, family-runned business for so long.

The Gap is another one to keep an eye on as the ex-CEO and chairman from Shoppers Drug Mart is heading there to right the ship of slumping same-store sales since 2004. The charts haven’t looked good even before that. Glenn Murphy had a good track record with Shoppers but there is a worry that he has no fashion experience. I do shop at the Banana Republic banner; the Gap and Old Navy, not so much.

Finally, there has been the incredible run of Le Château which recently did a 4-for-1 stock split. I can’t comment much on it as its apparel is not to my taste. I don’t know if the boat has already set sail for the chase.

In the future, I’ll be doing more research on these companies as an attempt to “invest in what I know”. What a concept.

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