Jim Glazen

Lululemon Makes Other Hot Clothing IPOs Look Cheap

Fundamentals don't matter as much as psychology for Lululemon at this point. The 25% comps and "beating the street" earnings estimates will be enough to continue to propel the stock higher. The higher it goes, the more shorts it attracts and the more is continues to inexplicably power higher.

It will eventually crash but not before the valuation gets ultra irrational and the stock destroys thousands of short sellers. That's how it always works for hyper growth momo stocks.

Is $4.5 billion market cap reasonable for a piece of junk plastic clog shoe maker?

The stock market is a game of exploiting hopes and dreams. Most companies and their management teams are piles of junk.

Lululemon Makes Other Hot Clothing IPOs Look Cheap

Lulu up 13% today. lmfao!! maybe you ought to change your name to dumbguystocks.com

Lululemon Makes Other Hot Clothing IPOs Look Cheap

Stock is already up another 7% today. Doubters like you thought Google was overvalued at $85 only to sit on the sidelines and lament.

700 stores is 12 times as many stores as today, not 100. Since you can't even perform basic math, I won't try to argue my case any further.

Just watch the stock and lament.

Enjoy.

Lululemon Makes Other Hot Clothing IPOs Look Cheap

by comparison, I predict Crox will be bankrupt long before 2015. Plastic clog shoes are a fad that will obviously go bust.

Lululemon Makes Other Hot Clothing IPOs Look Cheap

Plug in 700 international stores by 2015 generating $2.5 billion in annual revenue and $400 million in profits. This will be THE woman's athletic apparel manufacturer and retailer.

Apply a 17 multiple on 2015 earnings and you get a market cap of $6.8 billion. That's a compounded rate of return on the current stock price of 18%.

Good luck getting in cheaper. I doubt you'll get the opportunity.