I don't think I agree. LULU has had instock issues in the past, especially during the Q3/Q4 time frame. So the build in inventory doesn't concern me as much as it does others. I think they are probably 10 - 15% overbought...as opposed to the number in print of inventory +50% over LY. They grown stores nearly 30% YOY. So, I think they are actually in a good spot to capture total demand @ reg price.
The PE is actually in a good spot. This is a company that has very limited international exposure but huge brand equity. Lot of growth here. I would be shocked to see this in the 40's UNLESS the entire market tanks.
Sentiment: Strong Buy
"Wheres the value".. Sales are down and estimates are lower and the company has a PE of 29.... cause a few yoga practitioners use them. Wow! are you that ignorant?? Nike and Under Armor any day. Put that in your yoga bong and smoke it!
"Lululemon Athletica was upgraded to outperform from neutral, but had its price target cut to 69 from 73 by Robert W. Baird."
Proof that analysts are full of it. Upgrade to outperform but cut price target. Pure genius.
Just look at the trading action from yesterday especially the crazy volume. Naked short selling market manipulation like in fair fax and BH and now Lulu has got to stop. Look for the Barron's guy to start up again with the negative stories. Where is the SEC? Once again asleep at the control panel of life.
Sentiment: Strong Buy
Easy money on the short side for wall street. They take them up. When they short there are few buyers so they basically are guaranteed to make money and quickly on the short side.
They control the market with their billions of dollars that FED has provided. The money was never used as allotted to help the middle class. It was to make the rich, richer. Has now become overt and nothing anyone will do about it. Conspiracy theory. No! It is not a theory. It is fact.
LULU was one of the few stocks on the board that didn't get "hit" by the recent market slide. It also avoided the earlier destruction of retail stocks where shares of good companies like Coach, Kors, Urban and many others were beaten down mercilessly.
Nike, UA and LULU have been immune because the performance has been flawless. Yesterday, there was a flaw and it was all it took for LULU to be given the 10% haircut most market stock have gotten in the last month and probably more on the downside because it's a retailer.
Sometimes stocks trade for their individual story. Sometimes they get lumped into a sector and they all perform about the same. I think LULU is out of story and into sector mode as of yesterday. While the future is bright with a lot of growth on the horizon, it's all going to be ignored for the foreseeable future until the market gets healthier and sentiment swings back for retailers.
I expect it to fall further and yes, it's a big buying opportunity around $48, then a long hold. The valuation here makes it a real comfortable investment, given the growth. It won't see the $30's again but will see the $80's within two years.
Sorry to all the longs. Never easy getting whacked but it's part of the game. Buy more, be patient.
This whole market is made up of 2 components: The Investment Banking Cartel and their criminal clients, the Hedge Funds. The Cartel and their computers and Hedge Fund clients move the price anywhere they want. Fundamentals do not matter. Evidence: short AAPL yesterday, then steal the money, then rig it back up today, based on what? Manipulation. They send their stooges on CNBC to help them knock stocks down, and get people hyped up, just before they short you!
This is exactly why there are so little retail investor left. Decent earnings and take down a stock based on possible weak projections. They create a very unfair game. I see no reason why this should have dropped below 59-60.
= Investment Banking Cartel calls the Hedge Fund Mafia and tells them to load both barrels with 31 million shares short and slam it! Retail investors will have to wait another year to get your money back. The Cartel's mafia controls the price, and they like to make fast money on the short side.
Investor Sentiment: at least it is not BTU or ACI
Dude; Forward guidance is off that is all. My dollar says a $10.50 sell off is way over done. We will see over the next weeks whether that is true. We will see in three month how good the fall season was and in six month how good christmas season was. It will be good. This only question will be how good.