$120 has to be the bottom for LULU… right?

They have zero long term debt. I say again, they have zero long term debt. 9x P/E ratio. 9!? This isn’t The Gap. What the heck is going on. 55%+ gross margins. $1.8 Billion in cash. Aggressive buybacks. Okay, okay so US sales are flat. But…. International comparable sales are up 20 %. There’s as incredible disconnect between this company’s financials and the pricing of its stock. And I’ll tell you why. LEADERSHIP CATALYST. It all has to do with the proxy battle between the founder and the board and most recently dissatisfaction with the newly appointed CEO who spent start before… September!? Why the heck would they announce a CEO and say she doesn’t start for another five months. LULU is not a value trap at $120. I’m calling the bottom here. It’s not going any lower. On a final note- Lululemon’s financials are excellent and that’s why O’Neill is a fantastic pick for CEO. She wouldn’t have been a great if their financials were bad but since they’re not they don’t need someone who can act as a hardcore turnaround operator. What they need is someone who understands product innovation… which is exactly her. I am 50/50 LULU and NKE in my portfolio. And nothing else.