Lululemon Athletica (LULU) shares were up Thursday, even after founder Chip Wilson, who resigned from the board last year, criticized the company's management. In a letter to shareholders, Wilson said the athletic apparel retailer has "lost its way," adding that the current board and management team must set out a clear strategy toward regaining Lululemon's competitive advantage and profitable growth. Wilson, who is also the largest shareholder with more than 14% of the shares, noted that three years ago, his company's stock was double the value of Under Armour's (UA), which is a holding in TheStreet's Growth Seeker portfolio; it is now worth less than half. Lululemon is set to unveil earnings next week.
When founders attack! $LULU up 2%. Chip Wilson blasts board in letter. "lululemon has lost its way & I believe a call to action is needed."¿ Paul R. La Monica (@LaMonicaBuzz) June 1, 2016
If you ever wonder if we are in a credit bubble, look no further than Abraham Maslow's hierarchy of needs for an answer. The pyramid breaks down how consumer sentiment relates to a credit bubble. During the financial crisis, we were in the Physiological stage when safety was of the utmost importance. Presently we are in the Love/Belonging stage, according to Peter Tchir, a contributor for Forbes. This is the stage where investors at the margin are focused on High Yield, Emerging Markets and ETFs.
And, technology companies have come to dominate the S&P 500. Apple (AAPL), Alphabet (GOOGL) and Microsoft (MSFT) top the list, as all have seen their market cap grow in the last three years. Exxon Mobil (XOM) and Berkshire Hathaway (BRK-B) round out the top five, with Amazon (AMZN) and Facebook (FB) right behind the energy and the holding companies.
Apple, Alphabet (Class A) and Facebook are holdings of Jim Cramer's Action Alerts PLUS.
--Written by Anders Keitz. Carleton English contributed to this story.