[Jim Cramer is standing in a yoga pose wearing tight black yoga pants and gray yoga shirt] Why am I standing here in this ridiculous, or perhaps ridiculously fashionable, yoga get up? It's not just because it flatters my figure. And I'm not doing this yoga pose merely to prove I'm the most limber 64-year-old man on television, soon to be 65.
No! I'm standing here in the Warrior II-pose, well, actually I'm standing in the Captain-pose, embarrassing myself on national TV, albeit basic cable, because I will do ANYTHING to help you overcome your fear of red hot stocks. Stocks that you avoid because they're already up huge, but you really should be buying them because some are poised to go higher still. Stocks like lululemon Atheletica, the yoga-oriented athletic apparel retailer that's become incredibly popular with women, and it's even starting to gain some cachet among men, as you can see from this great looking outfit I'm wearing right now.
And you know what? I'm not the only one who likes lululemon! We know via my favorite paper, the New York Post, that Tim Geithner, THE TREASURY SECRETARY -- who, I should add, has done a bang-up job -- he owns the stock! He bought $1,000 worth back in 2007. Should you invest like Geithner? Do you think Geithner does the Captain?
Should you buy some lululemon even though it made a brand new high today? And it's trading at what most people consider to be nosebleed valuations? Forty-two times, sky high earnings! Or is lululemon stock, like it's exorbitantly priced, $100 yoga outfits.
Yes! Lulu looks expensive by most traditional ways of analyzing stocks but that doesn't mean you should stay away from the darn thing, uh uh. The stock looked expensive when I recommended it back in September, when it was at $43.24 and since then it's given us an 81% gain. It looked expensive when I reiterated my buy call in December at $67.80, and if you bought it then you're up 15%, i-in two months!
Lululemon has had a tremendous run, but we don't care where stocks have come from in Cramerica, we only care about where they're going! As for lulu, I still think this steaming hot stock has room to run and I'll tell you why: lululemon is a growth story. It's a company that's still in its infancy, or at least it's childhood. It definitely hasn't yet reached it's adolescence, very similar to the person who is hosting this show.
~Jim Cramer, host of Mad Money, CNBC's "Mad Money w/ Jim Cramer", February 7, 2011