NEW YORK (TheStreet) -- When I profiled sportswear maker Lululemon (LULU - Get Report) earlier this month in "Lululemon Is Oversold and a Value Buy Ahead of Earnings," I focused on the value the shares offered and the potential for a massive short squeeze. Lululemon's founder and board member Dennis "Chip" Wilson appears to agree, and reportedly is working with investment bank Goldman Sachs (GS) to increase his exposure and control over the company.
Lululemon managed to beat estimates by 2 cents and reported 34 cents per share. As of noon Monday, shares were trading at $41.66, up well over 3% for the day.
But is Lululemon's performance enough to satisfy shareholders?
Investors zeroed in on the margin compression and inventory levels. Wall Street is known for its incredibly short amount of patience, and if you're not careful, you may find yourself selling at the worst possible time.(AAPL) was trading under $60 (adjusted for split) and the news was filled with worry that Apple's story was over. I wrote several pieces explaining why investors should buy on others' fear, including "Apple Is a Gift You Won't Want To Re-Gift." Calpine Sees Risk to Geothermal as Green Energy Grows Time for Nike and Under Armour to Pay College Athletes Lululemon, eBay and Staples: 3 Retailers United Under a Red Flag Smith & Wesson and Coach: High Hopes and Low Expectatations At the time of publication, Weinstein had no positions in securities mentioned. Follow @RobertWeinstein Google+ This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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