Garmin, lululemon, Perfect World, Gmarket rallying

It's early as heck (3:49 a.m. here), but it may as well be Christmas Eve. Not because a bunch of gifts are sitting under the tree.

My screen is lit with red and green lights all over. Seems like another choppy session is ahead.

Up: RIMM, AAPL, CEO, FWLT, GRMN, CROX, LULU, PWRD, GMKT.
Down: GOOG, BIDU, FSLR, AMZN, SINA.

Gmarket (GMKT), a South Korean e-commerce Co, is riding on yesterday's blowout earnings numbers. Shares reached $24.48 but have pulled back to $23.89.

Apple's bounce is no surprise now that the early-week rumormongering by media with unfounded info about iPhone and iPod production was pure crap. AAPL is up nearly a buck to $135.95. CNOOC (CEO) is bouncing back from yesterday's bond issue, up $2 to $116.75. Still a steal at 11 times earnings.

Garmin (GRMN) is kicking tail and rolling up nearly 3% to $95.26. My decision to pass on GRMN at $83 the other day is giving me the blues.

lululemon athletica (LULU) isn't acting like typical IPOs. Nearly a week since going public, the stock refuses to sink. LULU is up almost 7% to $33.20 in what has become a sexy sector. lululemon's emergence is not hurting pseudo-competitors Crocs and Under Armor one bit. In fact, Jim Cramer touted all three during a long riff yesterday on Mad Money.

Surprisingly, Perfect World (PWRD) is rallying after a few days of decline. The Chinese online gaming company went public one week ago and reached $30 before the inevitable selloff. PWRD is up $1.39 to $22.39.

Starbucks (SBUX) buyers are happy. That is, the stock buyers, not the coffee buyers, who are now paying 9 cents more for their favorite beverages. SBUX is trading at $27.50 this morning.

On the down side, Eric Bolling of Fast Money hammered FSLR yesterday, predicting a drop to $75. Bolling, of course, is a gas/oil trading specialist, so he is a bit biased.

Also down, to my chagrin, is Nintendo (NTDOY.PK). The stock is mirroring a 3.8% drop in Tokyo. The U.S. pink sheets are currently down to $56 from the high of $65 (July 26), a plunge of 14%.

Nasdaq is just barely positive (up 9 points) and the Dow Jones is up 39 points to 13,400. Just another unpredictable day ahead.

Not quite a Perfect World

Since hitting an "all-time" high on Monday, shares of Perfect World (PWRD) have dropped 30% to $21.

That's a big owwee, but $30 was bit frothy for a company with revenues of only $11 million. PWRD hit its high just two days after debuting publicy on Thursday. IPO craze? Bubble market? Perhaps a bit of both. But as Kevin Kelleher writes at TheStreet.com, the Co is in the black for the first time and margins are eye-popping.

When I wrote about Perfect World after its debut last week, I couldn't help but notice the sweet artwork from its video game (also called Perfect World) in its SEC filing. The game is produced for the Chinese market, which means it hasn't been exposed to the rest of the world much. That could change soon because the Co now has a market cap of $3.9 billion.

Kelleher notes that Perfect World is investing a ton into R&D, which is par for the course with video-game companies. But consider this: Shanda Interactive (SNDA) doesn't spend its cash on R&D, but instead lets other companies do the spending. Then Shanda licenses games that are on track to become successful. It's like having a rancher raise the bulls and cows, then someone else comes in and pays only for the best, most productive ones.

A devotee of the Perfect World game would hold shares through the coming volatility and unpredictablity, but until PWRD proves it can produce more winners, Shanda has the more effective business model.

Pupule Paul has no positions in these stocks.

Perfect World, indeed

What about Perfect World?

The online gaming Co from China continues to score IPO gold. PWRD moved up 10% today, and now has run from $16 to $28 in three days of trading. This is on $11 million in revenues and $5 million in earnings. I'm not hating on PWRD. Just wary that the stock will cool off sooner rather than later. That's when I'll take a better look at an entry point.

Maybe.

Pupule Paul is not in a Perfect World.

It's a Perfect World (so far)

Chinese stocks tumbled yesterday, but what about IPO baby Perfect World?

You may have heard about this gaming company, but how many of us actually know much about their revenues and margins? On Thursday, PWRD opened at 11 a.m. Eastern time with a $16 tag. By day's end, PWRD traded at $20.

Yesterday, PWRD finished at $25.58, a 60% gain from Thursday's open. With a tiny float of 11.8 million shares, this stock will certainly crash as quickly as it rose. The question is, when?

Perfect World develops three-dimensional online games. Its role-playing games include: Legend of Martial Arts, Zhu Xian, Perfect World and Perfect World II.

Earnings? Yes. The Co earned $5.1 million on more than $11 million in revenues as of Q1. Thursday's IPO and Friday's hot close gives the Co a market cap of $302 million.

Perfect World's SEC filing is pretty cool. It even has art from the Co's games.