Collin Seow Remisier Blog

Lululemon Athletica (LULU): Ignore This Stock at Your Own Risk

Collin Seow
Publish date: Wed, 21 Jun 2023, 06:01 PM
Collin Seow
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Collin Seow (CFTe,CPM) is an experienced remisier who mentor his clients to help them to build a stock portfolio.

This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Did you just return from your summer holidays?

The gym that I visit has been frighteningly void of gym goers for the past two weeks.

And despite the reopening of borders, I think that companies in the health and fitness industry are doing extremely well.

So, let’s dissect one company in the health and fitness industry today – Lululemon Athletica.

 

Brief History of Lululemon Athletica

Lululemon Athletica

Source: info.lululemon.com/about/our-story/history

Founded in 1998 as a retailer of yoga related wear, Lululemon Athletica quickly expanded to other sports wear.

It had found success and soon expanded the number of stores.

However, the company was also riddled with controversies, namely for being misleading and the poor quality material it used in its yoga wear.

Did they affect the company’s financial health?

Let’s find out in the next section.

 

Business Model and Financials

Lululemon Athletica income statement

Source: tradingview.com

To tell if Lululemon Athletica is financially healthy, let’s have a look at its total revenue (blue bar) and net income (yellow bar).

Without the need to look at the numbers of its total revenue, you can tell that it has been rising every year.

The largest jump in its total revenue came in 2021 where it had jumped by 42%!

Has its net income kept up with the company’s explosive growth?

Unfortunately, no.

Is this weighing on its share price?

Let’s head over to the next section to find out.

 

Technical Analysis on Lululemon Athletica (NASDAQ: LULU)

Chart of Lululemon Athletica

Should you be on the lookout for buying opportunities?

Should you be buying its shares now?

Without the need of plotting your trendlines, support and resistance lines, and more, the answer is… Yes!

How was I able to conclude this easily?

You can do this too by looking at the 2 main indicators – red/green arrow and Trend Impulse Factor indicator.

When the green arrow appears at the same time as a dark green bar of the Trend Impulse Factor indicator, it’s time to buy the stock for a position trade.

It’s easy, right?

 

Conclusion

yoga

Source: unsplash.com

Lululemon Athletica was saddled with controversies, but this hadn’t stopped it.

The company continued to expand and grow, opening stores all around the world.

And this expansion showed up on its income statement.

Market participants are also bullish on its shares, and the time to buy its shares for a position trade is finally here!

Both the arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

 

If you’re struggling to make money from the market, just do this ONE thing in 2023:

If you’re like most people, you probably think that building a profitable side income stream from the stock market is something that is extremely difficult to achieve, and time-consuming as well.

And you probably know that one friend or relative who has lost a lot of hard-earned money to the market despite being ‘experienced’.

And especially since 2022 was a time when we saw many people in the red, bag-holding 20-80% losses…

It’s understandable to see why most people have such a grudge towards the idea of profiting from the market.

But what if I told you that amongst the many skills required to be profitable in trading…

There is one simple skill that will never make you feel that making money in the stock market is difficult ever again?

A skill that, if mastered, can dramatically increase your chances of success in the stock market.

I’m talking about the skill of identifying the right strong stocks.

If you have heard of this before but still do not have it figured out yet, let today be the day you get it right.

You see, the #1 problem with most ‘experienced’ traders who just can’t seem to make money consistently from the market despite having consumed tons of learning resources & materials is not because there is a problem with their strategies.

It’s because unbeknownst to them, they are constantly buying the WRONG stocks.

Stocks that have very bad set-ups, price movement, andin general just a low probability of moving in the direction you wish for.

In fact, this process of picking the right stocks is a crucial step that most people don’t even think about.

Ask yourself this, what is your current process for knowing what stocks to buy?

Companies that you like such as TSLA, META, AAPL etc..?

Stocks that your friends tell you to buy?

Stocks that you read about in financial news, blogs or Youtube videos?

Or even stocks that you spend hours reading up their financial reports and doing fundamental analysis?

If you have done any one of the above, you are making a dangerous mistake and that has to change.

Knowing how to pick strong stocks with the highest profit potential using a proper proven strategy is half the battle won.

It instantly eliminates any potential ‘bad characteristics’ of the stock and significantly increases your chances of being right in the trade.

Once you know how to pick strong, potential stocks, whatever comes after (knowing when to buy or sell) becomes a breeze and you can start expecting to see real, consistent results.

That’s how exactly I was able to still execute 20-40% and higher trades last year when the entire market was down.

So if you think profitable trading is difficult, think again.

I’ve trained thousands of students who started off with complete 0 experience and whose portfolio results are now lightyears ahead of their peers who started learning years before them.

That’s the power of mastering this very simple skill of identifying the right strong stocks.

It literally gives you the weapon to be able to profit in all sorts of market conditions, because opportunities are ALWAYS in the market. It’s all about knowing how to find them!

I hope you’ve learnt this very important lesson today, but more importantly, take action in pursuing the mastery of this skill.

I have an upcoming free LIVE training demonstrating my exact process on how I find strong stocks in less than 15 minutes using a very simple strategy.

What I will be revealing is a tested and proven counter-intuitive approach that you’ve probably never seen before, and it’s something you can apply almost immediately.

So if you’re excited to cut through the B.S and master the intricate skill of profitable trading…

Register your seats here and join me LIVE very soon!

P.S You can also get to ask me any stocks you are currently thinking of buying and I’ll show you if it’s a strong stock and whether the odds are stacked in your favour or not!

 

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