Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Not All Stocks Should Be Considered For Their "Christmas Appeal"

|Includes: Lululemon Athletica Inc. (LULU)

What is it about investing that makes people think that certain strategies will work despite proven laws of finance disproving it? It seems to be this way with certain investors considering stocks to purchase based on the Christmas season. In other words, some investors select stocks to purchase based on the idea that they think that these stocks might produce great Christmas gifts. 

Just because your child wants the latest whatever from such and such company does not mean that the maker of that product is the stock to buy this holiday season. Rather, there is no reason to purchase or short any stock based on the holiday. It is far better to look at the fundamentals of the company and the overall picture of where it is headed for the next 5-10 years. These facts are what guides stock prices for the long run. 

One such company not to buy on Christmas appeal is Lululemon (NASDAQ:LULU). Despite its products being some of the favorites among Christmas gifts, this stock is already overpriced as it is, and it is simply not the way to go at all. There are better stocks in the market than this, and avoiding the temptation to buy "Christmas stocks" is the best way to get a real gift from the market.