HYPED, OVERPRICED, OVER BOUGHT & A HUGE BUBBLE!
Over the last week, I finished a 72 hour options course...
and...after researching this disgusting and outrageously named company and its garbage and over priced websites...
On Friday... I had to open a SHORT Position in this Chinese/Canadian KNOCK-OFF Apparel Company.
With apparel a dime a dozen, in all areas of the clothing industries, and especially online, how can anyone continue paying 100% to 300% markup for yoga pants from this hyped KNOCK-OFF company?
I don't care how much money someone has, after a while, you start to look stupid as you continue buying KNOCK-OFF APPAREL from this company while your friends are wearing designer names!
DICK's sells NIKE PRO, with breathable technology, NIKE is a household name and their yoga pants sell for $34. If you have DICK's CASH, you could end up paying nothing.
With me, it's about perception, how I feel and how I want others to perceive me as. Wearing name brand apparel is a must and a no-brainer!
I never want anyone calling me cheap and that's what people think of you when you are seen wearing KNOCK-OFF APPAREL from this outrageously name company called LULU Lemon!
99.9% of my apparel, friends and acquaintances are name brand, NIKE, REEBOK, ADIDAS, UNDER ARMOUR, RALPH LAUREN etc..
Here you go...
"Canadian athletic clothing company Lululemon Athletica, which has suffered embarrassing recalls of overly sheer yoga pants, is fielding what it calls another complaint over the quality of its pants."
After looking at the Weekly Chart, every indicator is turning negative.
Looking at the Monthly Chart, every indicator is OVERBOUGHT and turning downward!
YOU WANT COMPARISONS..?
CLOSING PRICE AS OF 7/20/2018 - $126.45 - LULU Lemon earnings for the last 4 qtrs ($2.83) = The stock is trading around 45 x earnings (A HUGE BUBBLE)
CLOSING PRICE AS OF 7/20/2018 - $35.17 - DICK's, earnings for the last 4 qtrs ($3.07) = The stock is trading around 11 x earnings and DICK's pays a 2.56% dividend.
CLOSING PRICE AS OF 7/20/2018 - $76.96 - NIKE earnings for the last 4 qtrs ($2.40) = The stock is trading around 32 x earnings and NIKE pays a 1.04% dividend.
CLOSING PRICE AS OF 7/20/2018 - $92.94 - V F CORP earnings for the last 4 qtrs ($2.96) = The stock is trading around 31 x earnings and VF CORP pays a 1.98% dividend.
In order for LULU Lemon (The name (LEMON) in LULU speaks for it's KNOCK-OFF apparel) to make any sense for an investor to buy, the stock would need to trade back in the $65 to $75 range.
Right now, the numbers don't lie and therefore, the stock is a BUBBLE!
The company and its products are nothing more than KNOCK-OFFS, that people are getting ripped-off buying, that can be purchased on WISH, GEEK and other NO NAME apparel sites for pennies on the dollar and for this reason, I am SHORT this BUBBLE!
Best of luck to everyone!
and...after researching this disgusting and outrageously named company and its garbage and over priced websites...
On Friday... I had to open a SHORT Position in this Chinese/Canadian KNOCK-OFF Apparel Company.
With apparel a dime a dozen, in all areas of the clothing industries, and especially online, how can anyone continue paying 100% to 300% markup for yoga pants from this hyped KNOCK-OFF company?
I don't care how much money someone has, after a while, you start to look stupid as you continue buying KNOCK-OFF APPAREL from this company while your friends are wearing designer names!
DICK's sells NIKE PRO, with breathable technology, NIKE is a household name and their yoga pants sell for $34. If you have DICK's CASH, you could end up paying nothing.
With me, it's about perception, how I feel and how I want others to perceive me as. Wearing name brand apparel is a must and a no-brainer!
I never want anyone calling me cheap and that's what people think of you when you are seen wearing KNOCK-OFF APPAREL from this outrageously name company called LULU Lemon!
99.9% of my apparel, friends and acquaintances are name brand, NIKE, REEBOK, ADIDAS, UNDER ARMOUR, RALPH LAUREN etc..
Here you go...
"Canadian athletic clothing company Lululemon Athletica, which has suffered embarrassing recalls of overly sheer yoga pants, is fielding what it calls another complaint over the quality of its pants."
After looking at the Weekly Chart, every indicator is turning negative.
Looking at the Monthly Chart, every indicator is OVERBOUGHT and turning downward!
YOU WANT COMPARISONS..?
CLOSING PRICE AS OF 7/20/2018 - $126.45 - LULU Lemon earnings for the last 4 qtrs ($2.83) = The stock is trading around 45 x earnings (A HUGE BUBBLE)
CLOSING PRICE AS OF 7/20/2018 - $35.17 - DICK's, earnings for the last 4 qtrs ($3.07) = The stock is trading around 11 x earnings and DICK's pays a 2.56% dividend.
CLOSING PRICE AS OF 7/20/2018 - $76.96 - NIKE earnings for the last 4 qtrs ($2.40) = The stock is trading around 32 x earnings and NIKE pays a 1.04% dividend.
CLOSING PRICE AS OF 7/20/2018 - $92.94 - V F CORP earnings for the last 4 qtrs ($2.96) = The stock is trading around 31 x earnings and VF CORP pays a 1.98% dividend.
In order for LULU Lemon (The name (LEMON) in LULU speaks for it's KNOCK-OFF apparel) to make any sense for an investor to buy, the stock would need to trade back in the $65 to $75 range.
Right now, the numbers don't lie and therefore, the stock is a BUBBLE!
The company and its products are nothing more than KNOCK-OFFS, that people are getting ripped-off buying, that can be purchased on WISH, GEEK and other NO NAME apparel sites for pennies on the dollar and for this reason, I am SHORT this BUBBLE!
Best of luck to everyone!
Trade active:
It's just a matter of time. LULU has nothing unique.
finance.yahoo.com/ne...-next-151936021.html
UBS: Amazon will start dominating online fashion next via @YahooFinance
finance.yahoo.com/ne...-next-151936021.html
UBS: Amazon will start dominating online fashion next via @YahooFinance
Trade active:
Daily, Weekly and Monthly Charts are SINKING!
Amazon will dominate NO-NAME FASHION and put companies like LULU out of business!
Amazon will dominate NO-NAME FASHION and put companies like LULU out of business!
Comment:
HERE YOU GO SHORT SELLERS!
This is the reason I just commented on the Cosmetic CEO and what a disaster this new CEO could be for LULU...
This happened under the new CEO of LULU's watch...NOT GOOD NEWS for LULU
observer.com/2017/08...ints-beauty-insider/
This is the reason I just commented on the Cosmetic CEO and what a disaster this new CEO could be for LULU...
This happened under the new CEO of LULU's watch...NOT GOOD NEWS for LULU
observer.com/2017/08...ints-beauty-insider/
Comment:
Just spoke to a broker in Rhode Island. I was told there is a LULU store in Cranston, Rhode Island in the Garden City Shopping Plaza.
She said the sales people are rude, the store does not sell appeal for kids between 5 and 15 years of age and the store is not busy.
This is the 2nd store in Rhode Island that I've been updated on and sales are not good.
Not only are storefront sales slow, rent in these two stores I'm told is extreme!
LULU is losing money with storefronts.
They should have stayed online only and spent the rent money to aquire new online customers!
Is obvious the company has no clue about retail and simply got really lucky with past sales figures.
She said the sales people are rude, the store does not sell appeal for kids between 5 and 15 years of age and the store is not busy.
This is the 2nd store in Rhode Island that I've been updated on and sales are not good.
Not only are storefront sales slow, rent in these two stores I'm told is extreme!
LULU is losing money with storefronts.
They should have stayed online only and spent the rent money to aquire new online customers!
Is obvious the company has no clue about retail and simply got really lucky with past sales figures.
Trade closed: target reached:
I closed this trade a few days ago when the stock fell below $120
GOOD THING I DID BECAUSE IT IS AGAIN UP LIKE A BUBBLE
Position was only 500 Puts at $121
POSITION CLOSED WITH SMALL PROFIT!
I HATE OPTIONS...
I will stick with stocks from here on out...why?
With stocks, you own something, with Options, you own nothing unless you choose to exercise/trade your position.
GOOD THING I DID BECAUSE IT IS AGAIN UP LIKE A BUBBLE
Position was only 500 Puts at $121
POSITION CLOSED WITH SMALL PROFIT!
I HATE OPTIONS...
I will stick with stocks from here on out...why?
With stocks, you own something, with Options, you own nothing unless you choose to exercise/trade your position.
There was no traffic to speak of walking in and out.
RENTS in Newport, RI are very expensive and a losing battle for this company without a name brand / household name behind the company and its apparel.
If anyone thinks naming a CEO that was in charge of a cosmetic company is big news, think again!
It's like appointing a Pharmacy CEO to run BestBuy...It's not going to work!