Lululemon Makes for Luluwavering; Rally Earns Some Trust: Jim Cramer's Best Blog

Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

  • How Lululemon made him luluwaver
  • How the rally is earning some trust

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's--and reader comments--in real time.


Cramer: Lululemon Made Me Waver
 
Originally published June 2 at 7:11 a.m. EST
 
So, I wavered. Or, more specifically, the stock made me waver.

I am talking about the peripatetic style of the stock of Lululemon (LULU) , which is so hard to game even when you get the darned story right.

Last quarter, if you remember, Lulu botched the numbers and it fell from $66 to $50 in one session. I like Lulu and I had liked it for years, but I have been trying to pull back from stories I like, if that kind of reaction is possible. There are simply very few watchers and followers who can take that level of pain to get to some level of distant gain.

The reasons given for what amounted to a two-month shortfall had much more to deal with the wrong style and execution than I prefer. I would like to think a stock of a company that briefly slips up couldn't have that kind of negative move.

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