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LuLulemon Athletica (LLL.TO)

HOLD
A Canadian success story. Has obviously capitalized on the yoga wear trend. Trading at quite high multiples so any little slip up could cause the stock to drop 5%-10% which is what happened recently. Doing the right things by going into products that are different than yoga wear.
DON'T BUY
From a sector standpoint, retail has outperformed but recently under a little bit of pressure. Some jewelry retailers have given pessimistic guidance. LLL’s forward-looking guidance is a little less positive. This stock has some work to do, be cautious. Thinks there will be downside to $60, the 200 day moving average. There will be some profit taking.
DON'T BUY
Struggles with the valuation of 51X trailing PE and 39X forward PE. Growth rate is certainly there and the expected growth rate is well into the 20%-25% range.
COMMENT
(Market Call Minute.) Great company. Has been backing off recently over the last couple of weeks with some of the leading stocks in the retail sector. He would love to buy this one on Market Strength
SELL
Very expensive. Trades at a multiple of 45X earnings. Company has executed very well. They are in a special niche. When these plays pickup, you will see the stock come back. If you own, she would Sell, especially if we are into some rocky markets during the summer.
PAST TOP PICK
(A Top Pick Sept 13/11. Up 34.47%.) Still likes. Expect it will continue to surprise. Still not in all the markets of US, Europe and China.
COMMENT
Should he buy more? Benj never averages up. Feels it is a stupid strategy.
DON'T BUY
There is a lot of risk when it is at this price. Would be happy at a multiple of 25. Has terrific momentum and a fantastic company.
COMMENT
(Market Call Minute.) He was Short the stock but covered it yesterday. He thinks he was wrong and the stock is behaving better and is in the right space
WAIT
He likes to buy companies that are starting to experience positive change. He would wait on this one until they show operationally that they can show they can capture that momentum back in the business. Once these companies start to miss they just keep feeding on themselves.
HOLD
Clearly a wonderful, high achieving company. Recently reported positive earnings of revenue forecasts where a little bit shy. High growth stocks are extremely sensitive in these bear markets conditions. Has massive support from consumers with a little bit of caution in the air that can affect its numbers.
DON'T BUY
Great company and great products. Hitting on all the right cylinders in terms of marketing to the right people, but valuation is at about 35X next year's earnings and no dividend, which is way too high
BUY
Seasonals are now until black Thursday and Jan 23 to Apr 12. Strong trend line going up, a rising wedge, which are very positive for it. Look for it to break through it’s high from earlier this year.
COMMENT
Still seems to be foremost in the lines and still king of the fashions in sportswear. He would wait for a correction.
TOP PICK
A little expensive. Earnings they just posted were some of the strongest we saw on the TSX by a long shot. They lower guidance every single time they release earnings so people shouldn’t be surprised. Over-expansion is a long way away. They are picking up sales in Australia and New Zealand.
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