(TheReformedBroker) “Sometimes when stocks gap down on earnings they don’t bounce – they keep going and going lower, never to be heard from again. But I knew $LULU would at least bounce, even if it eventually retests the lows from this morning where I bought in (41.75 to 42.25). This is because LULU didn’t miss earnings or revenue or guide lower for the coming quarter – it simply didn’t blow The Street away by the same magnitude that it had in prior quarters. It still grew faster than most other public retailers and it still has more room to grow than any retailer I can think of.”

“Only an imbecile looks at +30% revenue growth as a ‘disappointment’ – especially amidst a market full of other stocks that couldn’t grow their top line revenues if their lives depended on it. And the fact that LULU may not have met sell-side analyst expectations means absolutely nothing to me. Because I’ve seen this short-term myopia before back when Coach ($COH) was a young, mid cap growth story during the last recession (2002 – 2003). It would blast the Street’s stupid expectations out to Jupiter three quarters in a row and then have a quarter that was just okay. People couldn’t wait to write it off and say it was “decelerating” or had peaked. And then it would smash the numbers for another three or four quarters in a row just to piss the naysayers off.”

“Short-termism is foolish when you’re talking hyper-growth potential and a young company with nothing but room to expand. I’m not telling you LULU is cheap or ‘deserves’ a 30 multiple or blah blah blah. I’m saying that stocks don’t get punished for growing revenues at a 30% clip for long. I knew they’d bring it back simply for the fact that, well, there just aren’t any other LULUs to buy, plain and simple.”

Full Story: lululesson (TheReformedBroker)

(TheReformedBroker) “My friend Brian likes to make himself feel better whenever he sees a hot girl walking down the street or waiting tables in a restaurant we’re eating at or working out at the machine next to him in the gym.  He says to himself (or sometimes out loud) that “no matter how hot she is, somewhere in this city there’s a guy dating her who is just absolutely sick of her.  It makes him feel better that even though he can’t have her, whoever does have her is totally over it anyway.  Brian is (mysoginistically) hitting on an important concept here about happiness and the trouble with establishing a new baseline happiness of comfort and expectation.”

“… after the close Tuesday night Apple severely disappointed The Street by reporting a quarter in which revenue was only 40% higher than Q3 2010, sales only came in $3.3 billion above the company’s own expectation.  Investors reacted by ripping 29 points off the share price over the next three days.  Talk about a hard-to-please group.  On the same night Yahoo shareholders rewarded the company with a 5% jump after they reported an earnings beat so small you’d need an electron microscope to see it.  Yahoo’s shareholders have absolutely zero expectations..”

“Sienna Miller is quite possibly one of the most gorgeous and talented actresses of the aught’s decade.  Had my friend Brian ever happened to hop onto a treadmill next to her at Equinox, his internal monologue would have sounded something like this: ‘Ohmygod Ohmygod Ohmygod Ohmygod Ohmygod…..but somewhere, there’s a guy who comes home to that every night, and he’s just sick of it.’  And he’d have been right, because Sienna’s husband fiancé at the time was the actor Jude Law, who was so ‘sick of her’ that he began sleeping with the overweight nanny who was taking care of their his children.”

“Is it possible for a giant corporation like Apple to grow any faster when we’re talking about a $100 billion annual revenue run-rate?  Obviously not.  Was it humanly possible for Sienna Miller to have become any more desirable and alluring to Jude Law?  Short of magically sprouting an identical twin sister who would also be sexually available to the young man, obviously it was not.”

“Both Jude Law and Apple’s shareholders have had their baseline happiness adjusted higher and higher, to a point where ‘happiness’ is almost unattainable.  When you’re along for the greatest growth stock ride in history during a time when the overall markets produce nothing for everyone else, you have become spoiled to the point of no return.”

“Sienna can hardly do any more crunches and Tim Cook can hardly release any more iPhone iterations to ever keep up with the expectations.  Because the baseline happiness levels are simply too high to hurdle.”

Full Story: Baseline Happiness, Apple and Sienna Miller (TheReformedBroker)

Possible early signs of market saturation for Apple, especially now that Google has released Android “Ice Cream Sandwich”?  (NotMakingThisUp) “But not one of Wall Street’s Finest — not one — asked about the most disturbing pattern coming out of Apple’s earning release: the measly 1% year/year revenue increase at Apple’s retail stores, the 26% year/year profit…”

Full Story: Apple: For What It’s Worth (NotMakingThisUp)

With Apple Computer’s stock ($AAPL) falling back to near $310 this week, is there anything you should consider regarding the company, especially if you own the stock long-term? And is it possible that the risks are beginning to outweigh the potential rewards? Gary Kaltbaum (www.garyk.com), in his June 20, 2011 Investor’s Edge radio show episode, offered an excellent perspective on the stock and on growth stocks in general. He also provides a brief overview of what to watch out for when momentum stocks begin to top out. And at least a few of us may still remember what eventually happened to past “darlings of Wall Street”, such as Lucent, Nokia, AOL, Intel, Oracle, WorldCom, … I’ve excerpted the clip here. If you’d like to listen to the full episode, it is available from his website at this link.

He doesn’t make any predictions, but just states some interesting facts and observations. The rest of the decision making is up to you…