Stock Splits

Obviously it's hard to get information in a timely manner on this side of the wall. It's a challenge. However, LULU (LuluLemon Athletica) has done well.
One student in Fairbanks has taken about $1,000 and made about $5,000 in 12 days. It's coming up on a stock split today. It's a 2:1 and will be reflected on Monday. The stock has gone from around $80 to $122. Over the years I've noticed that on the ex-date, in this case Monday, and shortly thereafter, the split stocks back off a bit. Not to despair, because they soon run into the next earnings season, and almost always they do well on the earnings front.
I've probably looked at the charts of about 2,000 stock splits---in many ways now a more popular strategy than rolling stocks---and I can only remember three which never backed off after the split. One was Coach (COH), the women's purse and bag company. I don't remember the other two. These split and just kept going. LULU could do the same.
It has an off-year end---Jan. 31. So, instead of June 30 being the quarter end, it's July 31st. Earnings will be sometime in August---probably around the 15th or 18th. You can look it up. So, the summer rally has started. In fact, it started early this year. It usually ends about mid-August. This year will probably be different. Who knows about the politics associated with the so-called debt crisis.
Okay, so, the game is still afoot. Watch it tomorrow. It's been a nice increase. Will it continue. I think Molly just bought the July 125 calls for $1.75. This is a cram-play. She only bought two contracts, or $350. I think she's going for a double. I don't know where the sell point is, but a double would be nice. Again the split is tomorrow, the expiration for July is next Friday, the 15th.
Watch and learn. It's fun to learn at someone else's expense.
Thought for the day: "It's a wise person who realizes the need for an extra, independent source of income." I add, wiser yet, if that person gains the skills to accomplish this.