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Lululemon Athletica Inc. Message Board

  • esedlecky esedlecky Sep 12, 2013 1:54 PM Flag

    why is it so hard to buy the open on days like these?

    Seems like it should be so easy. I guess I just never know if it will go lower or recover. The high P/E and slowing growth scared me out of doubling down at -7% this morning. Regretting my decision now.

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    • I just covered my short this morning for a 15% profit. I think LULU will be flat for the next quarter, so I don't think you're missing much. My guess is that it'll creep a little higher into next earnings and it's anyone's guess from there. They might be sandbagging with a lower forecast, but their slowing margins growth and growing inventory might be a problem. I think it'll be Q2 2014 before LULU can reset itself. If we get to $75 before next earnings announcement, I might have to short it again...but I would not enter a short position here.

    • I got in at $61 yesterday for 20k brother; but that was pre market. Smartest decision ever; this is still a great buy under $70! When they announce a new CEO its going for a nice 15% ride!

      Sentiment: Strong Buy

    • I don't think you made a bad decision at all. When a stock gaps down, it's supposed to continue in the direction of the gap. Obviously, that doesn't always happen, but that's the supposed rule.

      Not to mention, the analysts were looking for a new CEO to be named, or to at least have the company be much further along than they appeared to be.

      Why not let the post-earnings dust settle? If you miss an opportunity, chances are, you'll get another. If you'd bought the gap down last Q after earnings, you would've gotten killed for a week and a half.

      Whatever you choose to do, good luck.

      • 1 Reply to agjbwp
      • Thanks, man. Honestly, I'm not sure about the future of this company. Bought in because my sister said the brand is hot, the financials looked great and it had been beaten down excessively after the pants issue and Day stepping down. Thought it had been massively over-sold. However, I never really saw the bounce-back that I was sort of expecting. I think I was up close to 10% at one point, but now I'm down a couple percent. I wanted to hold at least a year, but the increased competition and decreasing margins are scaring me and I wonder if I should just abandon this one.

    • It wasn't very hard at all. That's because I had no position in LULU going into earnings. Obviously you don't understand the trading pattern of LULU stock. You buy into earnings. Sell just before, then buy again on the sell off. What's so difficult about that?

      • 1 Reply to nvc_invstr
      • don't be pompous ... buying into earnings may not have been profitable considering that the stock sold off for 3 straight days before earnings. You would not have made money buying late last week or early this week "into earnings" and selling just before. Also, getting in and out of stocks is not always easy. This could have easily jumped up on earnings rather than selling off. What would you have done then? You would have sold just before the gains hit!

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