Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 7, 2012  Fri 8:10 AM CT

LULU: SEE CHART GET CHAIN FIND STRATEGIES
It happened again with Lululemon Athletica!

I can't believe it. The company put up fantastic numbers--the best in retailand then gave muted guidance. What happens? The stock gets hammered before the market opens.

Do people wait for the call or the interview we did with CEO Christine Day? Do people think about how this company works? How it is conservative? How this is the game it plays?

TheStreet.com logoAt some point, the people who are either trying to paint the tape negatively (as I think short-sellers did with a blitz of selling) or are actually panicking will eventually get the message. This is a growth company that can put up stores for years and is just beginning its international ramp. This is a company that only has 12 percent men, and that could double with some attention.

The company barely discounts merchandise at a time when discounts are rife. Its brand is sainted and it is taking part in one of the most incredible secular bull markets in the world: the drive to look and actually be healthy.

The stock's not cheap, but no quality growth story is.

The management's a little unsophisticated when it comes to dealing with Wall Street. Think about it: Shouldn't they be reporting at 4 p.m. with a 5 p.m. conference call?

But this is a darned good story and it deserves to go higher, as it did, once the more informed buyers took over from the weak hands and the ill-informed.

Disclosures: Cramer's charitable trust has no positions in the tocks mentioned.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER