Friday, August 3, 2007

The Mad Pump: LULU

Cramer is pumping lululemon athletica today. Again.

But this time more in depth, calling it "Under Armor in 2004." He could be right, of course, because the growth numbers for LULU are extraordinary. As he put it, the "Under Armor for the New Age crowd." He did advise that this is not the time to buy in. I'm pretty sure buyers will keep buying LULU, which tailed off with the market today, only its second down day since debuting last week.

As long as Cramer pumps LULU on his show, the stock will be vital. Same happened with Spartan Motors (SPAR), a great Co with great numbers that went from $14 (pre-3 for 2 split) to $25. The stock cratered, though, after its growth rate slowed (couldn't get enough new contracts to satisfy the market) and is now trading at $12. Still the same great Co. Just a different mentality from the traders.

LULU is in a different space, downward dog and all. It can grow in its niche, just as UA and CROX do. I just think CROX still has the most widespread effect and potential. I think LULU will be more alluring after the 15-day, no-short period ends and the stock finally levels out, just as most IPOs do. Even Google dropped to $85 awhile after its debut.

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