This reminds me of Chipoltle (CMG). That stock went from $440 all the way down to $238. All the talk was of it losing it's appeal. Taco Bell was going to take market share with a new menu. They couldn't grow much more in the US and the internationals wouldn't be into the burritos...it went on and on.
But every time I went into a Chipoltle I saw people, lots of people. Just like now, where I see that lulu logo, everywhere, increasingly more on men.
Well Chipoltle crossed $600 in recent months. In the end, Wall Street doesn't give away money. They make you sweat and they try to break you. Hang in there, this thing will eventually go into the $150-$200 range if it isn't bought out down here.
I don't know where and when the bottom will be. Not below $25. Right now, this is a game "stopping out" the other guy. Powerful forces have pushed this down to force longs to follow their risk management rules by selling a losing position once it gets through a certain pricer.
I suspect they've got a whole host of people on the hook with that giant move down from the mid-forties to the mid thirties and expect a lot of selling pressure through this week. Whether that's the end of it, I don't know and I don't care. The lower it goes, the more I buy.
I think Sam is a paid pawn of the significant short interest in this stock. Why else would he be rushed out to publicly knock down buyout rumors? Too many "neutral analysts" on the take in this internet age.
Bottom line, shorts can pay all the Sam Posner's, Motley Fools and Seeking Alpha's they want. Something very good id happening here and shorts best cover before it's $55.
24% short float? Mr. Market took out the weak longs, now he's coming for the shorts. Stay stubborn, my friends. Ideally, you cover above $60.
Yeah. No debt. Nothing but growth in front of it. Beloved brand by women....thanks, Einstein. JCP is what death looks like in retail. Mountains of debt, zero growth prospects, yet it's still humming along.
Chip Wilson ended the short party. The sooner you realize it's over, the more you save.
Exactly. Mr Market plunged the stock to get the weak longs. Now, they go after Shorty. It's going to only get worse, just like it did in Chipoltle...slowly they will inch it up to $50 then all at once they will rip your head off.
I feel bad for shorts in this stock. All the reasons in the world to bring it back to $70...and they will.
Imagine being short this stock? In a world where an UA has a 60PE? They can do whatever they want with the share price from here and since they already got the longs, the 24% short float is next up. Would not be surprised to see $70 in a month or so.
You're on the wrong side of this trade. It's as simple as that. But you want to fight the teen and lose your money, then its your call.
In a world where UA has a 60PE, you think LULU, with the ability to open 60 stores a year is going to 10PE? Man, give tour money to charity and get out of this game while it can still do some good.
It's actually funny what a shill they are for anyone with money and a big short position in LULU. Keep watching and reading all of the pieces searching for something, anything that is legitimately worrisome and they keep coming up with nothing.
Bottom line, this is a growth company just scratching the surface of its potential. I hope it isn't taken private. I'd prefer to ride it to $150 from here over the next two years.
Don't hear much about the the London store sales which indicate foreign markets are hungry for the brand. Or the fact the brand isn't damaged because 99% of LULU shoppers don't read the financial news. Or that fact that what Chip said wasn't offensive, he was just stating fact as a reason for the issues......
In the end, the fact Chip is back, is great for this company. He's proven, over and over, to lead a successful collaboration on the design and material sourcing of items women will buy. Now it's just rinse and repeat, into more store locations than ever before.
Hope it stays public, this is going to be a great ride.
It goes behind that. You can buy editorial with money, which is what's happening with LULU. There is simply no way to make it in the internet news and information finance world when you give away the editorial to the reader and the ads get two cents a click. You have to get revenue somehow...
And the paid troll shows up. Hedgies getting desperate. Hope they plan on covering on this dip, going to be the last chance to get out for a long, long, long time.
This is Netflix and Chipotle all over again. Same arguments against the same, sparkling balance sheets.
You want to make a lot of money? Buy LULU and hold it.
The writers get paid by the hedge funds who are short. They bombard the finical world with these silly articles. Same thing happened in Chipoltle and Netflix. Eventually, the balance sheet wins out. It always does and big do we have a great one at LULU.
Just buy more.
One customer is worth five anywhere else selling this stuff. Have you seen the margins? Best in the industry. They can't open more stores quickly enough and they have a whole wide world in front of them.
Anyone short this stock, where it is now, is going to get their head ripped off....slowly through 50, then all at once up to $65.
I love this investment thesis. This is what the shorts think. They don't get the aspirational/luxury brand aspect at work here. They think women actually read financial news. that the brand is damaged. Take a walk in East Hampton, my friend...all Lulu. Brand is as hot as ever and going nowhere. See you at $65.
Well look who arrived on the Lulu boards. The old vulture. Hey old sport, funding my rather large lulu position with all the money I made long in HLF. I guess you're short with what little you have left from shorting that stock. Results will be the same here.
Soon as I saw you posting here, I knew I was right.
WSJ careful in their reporting. But people are talking and the price action indicates doors are opening for Chip Wilson and GS.
Always my favorite moment in a trade...when the opposite side realizes they're in big trouble and start calculating the potential losses of staying put. A lot of short covering this morning. Holding could mean $50 per share plus by Monday as the story emerges on who is willing to pay what....LULU is a growth story. Much of the country and the whole world beyond, still to be tapped. Go walk around East Hamton and see just how damaged the brand is....not at all.
Shorts are dead wrong at these levels.
And all this nonsense about it being too expensive at these levels...one word...London. Thank God, LULU opened that store because its resounding success is complete and total validation of the international growth value looking forward.
The company is a steal here. It's a steal at $50, it's a steal at $70. All they have to do is open stores and maintain quality control.