catalyst is oil prices. More money for consumers which lifts all retail boats, especially the second most profitable retailer, lululemon.
Add in the giant short float to squeeze and you should think twice about stepping in front of this. Nike and UA are at all time highs with much higher PE's. Once LULU stopped the bleeding, all bets on valuation based on fundamentals ignore the overall sentiment and metrics of valuations being applied to market cap on other strong retailers.
Lulu went from a wounded animal to a strong bull, overnight. Often when sentiment changes that quickly, traders have difficulty comprehending it and look to trade on the old sentiment, which no longer exists. That's you, here, now.
Correction..Nike PE is 30 isn which is where LULU is. It is however a much more mature company. LULU will mirror UA, a company with a similar growth trajectory in front of it.
chase, the most siginificant near term catalyst is the ICR XChange conference on January 12th. LULU usually pre-announces in this conference, and this time will be no different, I think they will raise the guidance for next quarter on or before this conference.
Sentiment: Strong Buy
$7.6 Billion market cap will soon be $10 Billion. You have already lost shorting this, time to move on.
You're right it should be at least $15 Billion. Visit a store and or their web site. My wife and I were at a new mall in Sarasota over the holidays. The Lululemon store was the busiest by far busier than Macy's, the Bose store and even the Tesla store. At least 1/3 of the customers were men so brace yourself this is going higher.
Sentiment: Strong Buy
Thank you for the info, I invested in June so wasn't around for it last year. All indications from my many trips to various LULU's this holiday season indicate we're in for good news.
Reminds me of all the downgrades we endured at a time when people should have been buying. How does Sam Poser and that Buss guy still have jobs? I mean, if you can't figure out that the retailer with the best margins in the business is simply going through a natural reorganization following an incredible growth surge, you really shouldn't be in the business.
I"m waiting for an upgrade from Buss. That'll signal a top. I don't get how these guys have jobs either. Nothings changed in 6 months yet overyones ratings keep changing. This stock should never have been sub 50.
Yeah i think they will also announce many new store openings. 12 months we shoild be at 50 day moving average of 59. Conservative play in retail lulu looks great. They have a solid balance sheet unlike most other in the retail space
Hey chase do you think ANF could be in turnaround mode. I know its no LULU but the valuation looks compelling. I bought some leaps the other day. Didn't load up yet though because I'm still unsure. Sold feb $52.5 puts on lulu also the other day when it cracked $55. got 2$. So far between the JANs and FEBs I've received $4.5 but it does look like I could be leaving money on the table. Big volatility on premiums this week. Must be due to next week's conference.
I don't know much about the brand. I'm curious, so will do some research and let you know.
I wish you had a school I could attend on options. But then I think its best for me too keep it simple, buy, hold or sell...it's been working. That said, right now I sure would like to be buying a future price in lulu while unloading shares. I did sell some today...first sale since my last buy back in June. Will start aggressively selling through $62-$65. I wish they all worked out like this one. I do like LULU long term but think inevitably there will be some volatility and there's the whole thing about pigs...
Before I got too far into it, I emailed my HS age niece. The brand is finished:
"No way, my friend wore a sweatshirt with the word Abercrombie on the sleeve and people made fun of it all day."