Previous Recommendation
LULU Athletica was previously recommended by Caligiuri Investments on December 9th, 2010. Since then, the share price has increased from $63.56 to a share price of $85.31. This is an increase of 34%. If you would like to read the previous recommendation, please click here.
Still a Good Buy
Despite the 8% jump today, I still feel that LULU is a good buy. Investors Business Daily's (IBD) analysis of the share price jump is below:
"Lululemon Athletica (LULU) leapt 9% and cleared a 85.38 buy point in a base-on-base pattern. There's no specific company news, but the stock has already traded nearly double its average daily volume. The yoga apparel and accessories retailer remains one of the market's leaders, with earnings growth of 60% to 200% the past four quarters."
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Basically, investor confidence in LULU Athletica is increasing. As the company expands its operations, consumers are beginning to understand the powerful appeal of LULU products. I fully expect this consumer confidence to continue increasing, which in turn will lead to more profits for investors.
Michael R Caligiuri owns stock in LULU Athletica
Showing posts with label LULU. Show all posts
Showing posts with label LULU. Show all posts
Monday, March 28, 2011
Thursday, December 9, 2010
Buy LULU Athletica Inc (LULU)
What triggered me to recommend this today:
Shares of LULU stock have already increased by 17% today due to a strong earnings report. When a share price increases this much, it usually means one of two things: 1) The share price increased too much and now the stock overvalued, or 2) This price increase is just the tip of the iceberg and the share price will continue to increase in value. Needless to say, I think the latter situation is what is really going on right now; the share price will continue to increase.
Quick Profile on Business:
Lulu is a company that provides stylish athletic apparrel for women. It has already developed a name brand, and has had tremendous success.
Important Financial Metrics:
Extremely Profitable:
The profit margin and operating marging are over 14% and 22%, respectively. Return on assets and return on equity are over 27% and 35%, respectively.
Growing Business:
Revenue has increased over 55% from last year. Earnings have increased over 135% since last year.
Cash vs Debt:
Over $178 million dollars of cash compared to zero debt
Shares of LULU stock have already increased by 17% today due to a strong earnings report. When a share price increases this much, it usually means one of two things: 1) The share price increased too much and now the stock overvalued, or 2) This price increase is just the tip of the iceberg and the share price will continue to increase in value. Needless to say, I think the latter situation is what is really going on right now; the share price will continue to increase.
Quick Profile on Business:
Lulu is a company that provides stylish athletic apparrel for women. It has already developed a name brand, and has had tremendous success.
Important Financial Metrics:
Extremely Profitable:
The profit margin and operating marging are over 14% and 22%, respectively. Return on assets and return on equity are over 27% and 35%, respectively.
Growing Business:
Revenue has increased over 55% from last year. Earnings have increased over 135% since last year.
Cash vs Debt:
Over $178 million dollars of cash compared to zero debt
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