Lululemon Sell-Off - The Short Sellers are circling

 Shares of yoga pants maker lululemon athletica are getting slammed this afternoon. 

*Benzinga is reporting that there's a rumor circulating that David Einhorn of Greenlight Capital is shorting the stock.

Einhorn is famous for shorting companies like Lehman Brothers and Green Mountain Coffee Roasters before their stocks plummeted.

On separate occasions earlier this year, Einhorn words caused St. Joe's Company, Martin Marietta Metals, and Herbalife to instantly tanked.

lululemon athletica inc.



Read more: http://www.businessinsider.com/lululemon-sell-off-2012-9#ixzz26uCtn05f

Source for chart:  http://www.marketwatch.com/investing/stock/lulu/charts

Lululemon Sell-Off - Business Insider



Shares of Lululemon (NASDAQ: LULU [FREE Stock Trend Analysis]) have fallen sharply during Tuesday's trading session after more market rumors surfaced that David Einhorn's Greenlight Capital is short the stock. With less than two hours left in the trading day, LULU was down more than four percent and moving on very heavy volume. Around 3.1 million LULU shares had already traded hands on the day compared to a three-month daily average of just over 2.8 million.

LULU has been a top momentum stock in recent years, and the shares are up better than 347 percent over the last five years. Year-to-date, the stock has risen almost 64 percent, including a 21 percent gain over the last three months.

Given the strong growth at the yoga-inspired apparel retailer and the continued performance of the stock, LULU trades at a lofty valuation. The stock trades at a trailing P/E of nearly 50, a forward P/E of 33 and a PEG ratio of 1.56.

David Einhorn has been noted to target companies with high valuations in the past, such as Green Mountain Coffee Roasters (NASDAQ: GMCR) and Chipotle (NYSE: CMG).

(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Lululemon Falls on Rumor That Einhorn is Short

 Link:  http://www.benzinga.com/news/12/09/2920001/lululemon-falls-on-rumor-that-einhorn-is-short

Posts by Scott Rubin

Read more: http://www.benzinga.com/news/12/09/2920001/lululemon-falls-on-rumor-that-einhorn-is-short#ixzz26uF2HwFg