Shares of Lululemon (LULU -1%) slip below their 200-day moving average as last week's negative...

Shares of Lululemon (LULU -1%) slip below their 200-day moving average as last week's negative take from Credit Suisse and a Chipotle-inspired momo scare keeps the selling pressure on. SA author Robert Broens sees more downside risk ahead with high revenue growth over the next few years needed to sustain the stock's lofty multiples. He says if LULU hits $75 again before Q3 earnings are announced, a short sale is tempting.

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  • R&R Capital
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    Much was made of early discounting at LULU. I was in the Westport CT store yesterday and there was not a single guy thing on sale. The person at the store commented that business was strong when I asked her... There is no dispute, that like their clothes, LULU stock is expensive, but the most salient point is LULU makes the best clothes out there for athletic folks period. I can't stand spending $78 for a tshirt, but I do and its pretty much all I wear because the stuff just makes you look good... Be very careful shorting this one because they have many loyal customers like me and a great product... There are plenty of crappy companies with crappy products out there and thats what you should short...
    24 Oct 2012, 10:24 AM Reply Like
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