7/10/24 - $lulu - 1% position initiated @ $2857/10/24 :: VROCKSTAR :: NASDAQ:LULU
1% position initiated @ $285
- look at $LULU/ NYSE:NKE
- same low 20s PE, higher growth, better FCF yield, see no reason why this trend doesn't continue. always always own the smaller marginal gainer when you can, returns will be better
- look at $LULU/ INDEX:SPXEW (the equal weight S&P) and you'll also notice LT outperformance. despite the whacky paradigm we're in today where 10 stocks are 80% of index returns, sometimes it's harder to identify marginal gainers against tech. so if we treat tech like anything else, NASDAQ:LULU remains a better money than most of the stocks in the S&P.
- not a must own, admittedly. we REMAIN in a consumer-poor environment and this hurdle is hard for the mkt to look thru. even rate cuts don't immediately benefit an ailing consumer losing his job, immediately. that said, NASDAQ:LULU remains a premium px product (and still best product in it's category) and this consumer likely hurts less.
- I'd like to own more than 1%, but will start using 5-10% down from here increments to feel it out. I'd plan for it to become 2% or if we start going in the sub $250's, perhaps 2.5-3% scaling up as we go lower.
LMK if u see it differently or agree
V
PS - read my prior NASDAQ:LULU post for context from 5/20/24. turning this into a "new idea" bc at this pt i'm starting to build a position and want to separate the two thoughts.
