20% rev increase, still close to 50% gross margin, Small global market penetration...I'm considering adding to my position in coming days, depending on how things play out. This board is dominated by bears, so take it with a grain of salt.
What's good in the past is not necessarily good in the future.
Ask yourself one question: If LULU relies on international expansion as their next growth stage, who can do it better than Ms Day....? If you can't answer this (nor can these lame duck ANAL-ysts), then you should touch this stock for the long term.
there is something fundamentally broken within this company...much more than meet the eye.
It baffles me that anyone would think today is an "opportunity" to buy this stock. It gapped below its 50 and 200MA in HUGE volume, it's now well below its 10 week MA in HUGE volume, heck it hasn't even bounced off its lows today. This type of volume means big funds are dumping the stock.
It's formed a triple top on the weekly chart, it failed a 5th stage base breakout (as most stocks do), it has 6 weeks of distribution on the weekly chart since December, with one week of accumulation. Those signs say SELL, not buy.
The CEO has driven this bus for the past 5.5 years, and she's leaving. Her reason why? The "timing is right"....how on earth is that comforting?
If you're looking for a dead cat bounce trade to $70.24 or back up to the 200 or 50MA, okay I get it. But buying the stock for a long term holding is absolutely foolish. It's a growth stock with decelerating growth and no dividend. It's a one trick pony selling overpriced yoga pants, and competition is coming at them fast and hard, which will at a minimum continue to cut into their margins.
Not to mention, you'd buying a company that does not even have a future CEO!
But whatever floats your boat people. In my opinion, this stock is eventually going to $25.
If you believe greatly in the company go right ahead.
The first clue should have been the black luon issue and the take down of estimates at that time. Keep in mind the stock went down to $66 or $67 at that time and then went up over 20% to $82 on basically a short squeeze, no fundamental reason for it to have gone up.
Now the stock is still slightly above where it was then and their guide up just puts them in line with analyst estimates (hardly a guide up).
You may want to wait until Thursday or Friday AM to see where the stock is.