Richard Croft LuLulemon Athletica (US) LULU-Q TOP PICK Dec 27, 2019

It is a large company with good products but some styles that are coming back are not their strength. Revenue is slowing down which is not good for any stock trading in the 50X, 40X or 30X range. Revenue guidance dropped in the last quarterly report. He prefers smaller size retailers.

Started the year at $520, then lost 50% of its value. Starting a recovery, but losing steam. A possibility, but be very careful. Not a lot of volume on the buying, certainly not as much as on the downside. Don't take a big position, $300 would be a good place to get out.

Tries to stay away from specialty retailers, though LULU might be an exception. Seems to have bottomed out and is coming back. Tough business. He'd rather own an AMZN.

Shares soared 16% today after reporting. China was a key driver. Inventories and loyalty program are doing well. An excellent quarter. They bought back a lot of shares.

 It reports Thursday. Many short-sellers are betting they won't sell enough because of their high prices, but this is a remarkable company.