Monday Jan 13 2014
In TMP this weekend we suggested stocks look rather toppy. Just this morning Lulu and Sodastream are selling off. Read the link to see how news of lower eranings is causing unease among investors. This is why we study the construction of earning per share.
LULU SODA
Students in my classes are aware that I have used LULU as a stock I thought was over priced for some time now. Finally the day arrives. IN the last month it has lost 1/3 of its value, down 15% just today. Sodastream is having about the same literal results at bottom.
What happened? Social mood went from positive to negative, just that fast. There is an old saying that eventually the fundamentals, earnings, justify the technical outlook which is this stock was over valued.
Professor Elam 
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