LULU Lululemon Athletica: Powerful Brand

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	David Sachdev
	Washington, DC User since Dec 2009	37
Covers MCP SINA GLUU SODA BAC AAPL TIBX and 3 other stocks - Go to Blog
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Powerful Brand

The rich keep buying, and I think that is one of the primary markets for LULU. You see their stores in areas where there in money...Bethesda, Tysons, across from the Whole Foods in DC.

Their target audience isn't usually effected by the downturns except for the monthly statements in the mail. I think that this stock is headed back up, and I chose it's next resistance point as my target.

Market looks strong today, but in general I am still a bit cautious. 2008 brought us some big drops before Halloween, and I think a lot of investors are cautious of a repeat. Trading more on technicals here then fundamentals. A cross above the 50 day moving average at 56.33 would be good for this stock, although I have already limped in with two buys today.

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What People Are Saying...

Mike Barkett agreed at 8/29/11 1:03 PM Price action was $54.97 2.66 (+5.1%)

David Sachdev said at 8/29/11 4:53 PM Price action was $55.24 2.93 (+5.6%)

I am going to have to do some research to see if I want to hold this stock through earnings:

VANCOUVER, British Columbia--(BUSINESS WIRE)-- lululemon athletica inc. (NASDAQ:LULU - News) today announced that its financial results for the second quarter fiscal 2011 will be released Friday, September 9, 2011. The company will host a conference call at 9:00 a.m. Eastern time to discuss the financial results.

Mike Barkett said at 8/29/11 11:03 PM Price action was $55.24 2.93 (+5.6%)

If the market holds up, this stock at $55 will look cheap.

Wesley To agreed at 8/30/11 10:47 AM Price action was $55.12 -0.12 (-0.2%)

If the market holds up, A LOT of stocks look delicious. I agree though this is a very strong brand.

Mike Barkett said at 8/31/11 7:05 AM Price action was $56.07 0.83 (+1.5%)

image credit: ehow.com

David Sachdev said at 8/31/11 3:52 PM Price action was $54.17 -1.90 (-3.4%)

Back in LULU at 54.74

David Sachdev said at 9/7/11 10:18 AM Price action was $55.00 0.89 (+1.6%)

IS is out with its report on Lululemon, raising its PT from $55 to $65.

In its report, ISI writs "Lululemon is one of the most exciting consumer growth stocks, and it remains a top pick given its tremendously profitable and long-tailed growth opportunities. Though the stock's super-high valuation (39x) is understandably difficult to swallow for many, we think investors will be increasingly willing to pay up for this rare story of a consumer brand that is literally creating an exciting, highly profitable new category."

Ginger Gal said at 9/7/11 1:07 PM Price action was $56.48 2.37 (+4.4%)

Earnings coming on on 9/9/11. Should ramp up on potential for earnings increase.

David Sachdev said at 9/8/11 10:15 AM Price action was $57.19 0.54 (+1.0%)

Added to LULU at 57.39 - slightly higher then were we are at the moment.

David Sachdev said at 9/9/11 11:35 AM Price action was $54.55 -3.14 (-5.4%)

Great quarter...but the market doesn't like their Q3 guidance...yet. But it also sounds like they are planning on really getting online sales up and running.

I think we will see some stuff out in the next week or two basically saying that LULU management is being conservative on Q3.

Greece is the new worry...again. I think getting past this 9/11 weekend is also critical, so already got a lil more protective this a.m., may put some of it back in if prices get stupid cheap.

Mike Barkett said at 9/9/11 11:38 AM Price action was $54.22 -3.47 (-6.0%)

anywhere near the 40's this will be a tremendous buy.

David Sachdev said at 9/9/11 1:09 PM Price action was $53.78 -3.91 (-6.8%)

I still feel bad talking fundamentals about stocks because I fear I'll give novice investors the wrong idea...this is a trader's market, and you should treat it as such unless you ignore the daily ups and downs.

Watching the S&P E-mini futures (/ESZ1 now) last night ignore Obama, ignore the DC and NY threats, open up strong, and then being brought down huge around 8:15 this morning was a huge indication that fundamentals still don't matter at the moment.