LuLulemon Athletica (US) (LULU)

Thinks we are in a correction phase in the markets. Thinks we will bounce a bit more and there should be at least one more leg down. Even if they keep delivering on earnings the multiple on this stock could keep coming down. It might pop, but has not show the sign of it having bottomed.

One of the most prominent active wear companies. Stock has fallen off and is now starting to recover. This is a time when you want to see a point of support. From a valuation point, it is still rich. From a technical perspective, it is okay to step in here but you want to look for its ability to replicate the same type of top line growth. A lot of companies these days, particularly in the consumer space, are focused on that top line projection.

(Market Call Minute) Guidance for next quarter is not good.

Trades at a high multiple. There is a lot of air under that stock price. If they miss, they are not seen as a growth company any more. The business they are in, apparel, management turmoil, makes them not as enticing as their products.