Martin Cloutier

Have Canadian Financial Stocks Bottomed?

I think these are great entry points for a long-term investor, I don't think they can fall back much more than that, may be up to 10% from these prices but not much more. I own BNS and RY.

Will Someone Please Explain Lululemon's Outrageous Valuation?

This is a case of misunderstanding the business, but drawing the correct conclusion anyway.

Lulu is a trend/lifestyle brand that is much more than yoga. It sells an active, healthy, socially responsible lifestyle - whatever that is - versus the performance, competitive edge that UA sells. I think you can compare those 2 companies, up to a point. They are certainly high growth, have great marketing targeting people that don't really need their stuff but will buy them anyway. I'm no athlete but I train in UA T-shirts and my wife in Lulu's.

But at a PE of 71 and a market cap of 1.5B, I'm not a buyer of their stock. I've been eyeing UA stock for a while, but even at these valuations (PE 35, cap of 1.6B ) I'm still uncertain...But I believe they will continue to grow. How much, how long, how fast, that's the question, the answers would tell me if these valuations were worth it...