Tuesday, January 28, 2014

Is Lululemon Too Hated Right Now?

Do you remember when Chipotle Mexican Grill (CMG) came crashing down to Earth in mid-2012. How about a year earlier when Netflix (NFLX) dropped 80% in four months? What does this have to do with Lululemon (LULU), you ask?

Well, it just so happens that shares of Lululemon are off more than 45% from their all-time highs amid serious growth concerns and constant negative press. The situation is very similar to the ones I mentioned above, which means the yoga company has the possibility to make a massive recovery in 2014 and beyond.

While the circumstances are unique to each company and I am clearly generalizing here, there are patterns to the way the market works and there is most definitely one when it comes to high-quality, momentum stocks correcting sharply. Click here to learn about the pattern I have recognized and see if you agree! Enjoy!


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