Jun. 9 at 8:43 PM
$LULU proof that valuation matters. Sold off 130 to 125 into earnings, 125 down to 108 on earnings after hours. Terrible earnings call, everything negative for guidance/outlook, and yet here we are back at 121, and I would bet we ultimately regain 125, maybe even 130. Why? Did anything change? Did anything improve? No. It was just too damn cheap based on earnings, cash flow, buybacks, projections, etc. It’s still a real company. The f***ing tariffs made North America look much worse than it otherwise would have been. I’d lay in shares and long-dated calls here.
