Lululemon, so Misunderstood

 | Dec 06, 2012 | 3:24 PM EST  | Comments
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It happened again with lululemon athletica (LULU)!

I can't believe it. The company put up fantastic numbers -- the best in retail -- and then gave muted guidance. What happens? The stock gets hammered before the market opens. Do people wait for the call or the interview we did with CEO Christine Day? Do people think about how this company works? How it is conservative? How this is the game it plays?

At some point, the people who either are trying to paint the tape negatively (as I think short-sellers did with a blitz of selling) or are actually panicking will eventually get the message. This is a growth company that can put up stores for years and is just beginning its international ramp. This is a company that only has 12% men, and that could double with some attention.

The company barely discounts merchandise at a time when discounts are rife. Its brand is sainted and it is taking part in one of the most incredible secular bull markets in the world: the drive to look and actually be healthy.

The stock's not cheap, but no quality growth story is.

The management's a little unsophisticated when it comes to dealing with Wall Street. Think about it: Shouldn't they be reporting at 4 p.m. with a 5 p.m. conference call?

But this is a darned good story and it deserves to go higher, as it did, once the more informed buyers took over from the weak hands and the ill-informed.

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