LULU Hourly

4 Ara 2012

LULU will miss earnings meaningfully this week. Were the last quarter's tax rate not lowered, presumably by the CFO hoping to keep the stock elevated at 50+ times earnings, to 19% from the 36% of the past two+ years, earnings in the most recent quarter would have been .17/shr vs. .27/shr (for those of u not familiar with arithmetic) rather than $.39 (I forget, it might have been $.37). This is one of the most obvious shorts I have ever seen. In addition, the company chose, in the interest of not injuring earnings in the income statement, to Capitalize Expenses and put $17 mil of Prepaid Expenses on the balance sheet, and only flowed <$3 mil in operating expenses through the income statement. Sales per store have been declining in each of the last three quarters, as well. Geez-"Sounds like a great long to me?............"