lululemon athletica inc. (NASDAQ:LULU)

@ 52week high, betting on some profit taking

I jumped on the short bus a little early simply because of the fad aspect. They have certainly grown their potential, but it would be a little dubious to say that a maker of athletic wear who really has no other competitive moat besides the fact that people know their name, and that they are obviously the largest fitness apparel company focusing on the yoga/pilates/etc. trend, is worth this much. Brand name can get you far in some industries, such as ones with extremely large potential markets like beverages (i.e. Coke), but fitness apparel is not one of them. Other household names could easily enter this industry and steal valuable market share in an industry with very little room for growth in the potential customers.

Those who are going to buy from lululemon most likely already have, and could certainly stay loyal, but realistically how much room is there for customer growth? This is not a company who is worth almost 60 times earnings. It may still be worth higher than a mature company, given that it still might have a little growing to do, but even a 20 times earnings multiple puts this company at closer to $20-$25. And who knows if that is even worth it if other companies come in and steal market share.

this fad will eventually wear out, just like all the others...

The stock is Over priced. I don't see the moat surrounding the products.

I just don't get it. On every single metric, on every single ratio, on every single statement, this looks hilariously overpriced. Even fundementally this looks hilariously overpriced. I just don't see how we can live in a world where yoga mats warrant a forward PE of 40. And a price to free cashflows of 184!!! And a price to tangible book of 12. I think I'm out. I just don't have a connection to the real world anymore if people honest to god see this as fairly valued. This is the MOMO traders dream right here, 40% dips followed by 40% rises. Let the rollercoaster begin!

A luxury brand that people seem willing to spend on, in good economies and bad ones. A true Rule Breaker.

Goldman Sachs has added Lululemon to its 'Conviction Buy' list? Now we can be 100% certain that the end is near.

overpriced and recent PR misteps growing inventory concerns.

A thumbs up based on my bullish article here: http://www.fool.com/investing/general/2011/12/02/lululemon-why-the-street-got-it-wrong.aspx

Summary: The company is still looking strong after third-quarter earnings, especially with the four growth catalysts I listed in my original buy report.

1. Expansion beyond the company's core yoga base
Management doesn't normally break out sales by sport, so the last data point I have is that running apparel made up about 20% of revenue in the fourth quarter of last year. New running lines are being introduced, and there is also a focus on dance and gymnastics, so I'm pretty confident that things are going well here.

2. Expansion beyond women's wear
There was a brief (pun intended) mention of men's wear in the conference call, when CEO Christine Day said the line "has really done well" and is currently being revamped. She says we'll see new stuff by summer -- "the big popping stuff." Can't wait! Men's apparel now accounts for about 12% of sales, up from 10% in last year's fourth quarter.

3. International expansion
Management continues a measured rollout here, with logistical support being lined up for e-commerce sales to Europe and Asia; localized websites in Australia, Hong Kong, and the U.K.; and new showrooms slated to open in London and Hong Kong early next year.

4. Online sales
"Direct to consumer" revenue grew 71% from the same quarter last year, to $23.9 million. That's an increase from 8% of total revenues in the same period last year to 10.4% this quarter.

I am ready to get in now. Lululemon has a great niche market, it is the premium brand, and it is popular amongst hard core yoga, and trendy yoga participants both.

end of Nov 2011, making 3 longs picks and 3 short picks:
long: mdci, mcz, jrcc
short: lulu, bidu, clh

This company has a great track record for sales growth, and is well positioned to take advantage of increased consumer confidence going into the holiday shopping season.

EC likes the company because it is well run, is the leader in female athletic ware, and is growing top and bottom line.

I go with my daughter to lulu and see all them young girls with arms full of clothing,just worried fashion will change sometime watch close

Lululemon will be depleting it's cash, growing debt and all it's expansion channels are competition heavy. Qtr to Qtr, 3quarter uptrend in cash conversion cycle indicating a slowdown in sales in an already FAD driven retail area. Coupled with the economic volatility and downtrend LULU can not sustain it's current price.

Lulu delivers an excellent shopper experience with...
- Innovative athletic apparel
- Stores that resonate with guests
- And strong community relations

As a result, they are developing a passionate core group of customers. This leads to a strong 25% CAGR.

Priced for perfection with deteriorating product quality.

I am not big on calling upside for retailers in this environment, but I like their performance and their guidance.

Women's version of under armor.