Stockhouse Short Report: Short sellers hover over female vanity stock

Canadian apparel maker Lululemon is again under pressure amid reports that a quarter of the floating shares have been borrowed short. Short sellers continue to hover over Lululemon Atletic Inc. (TSX: T.LLL, Stock Forum)

Stock Forum), the Vancouver-based Yoga apparel maker. When Short Report last wrote about Lululemon in February, the company was being described as a gambit on female Vanity. In his Bronte Capital blog, Australian short seller John Hempton explained that he could think of no better explanation as to why the stock had jumped to around $65 from $47.50 in December 2011. The 52-week range is $80.08 and $42.50. Now that the stock has slipped to $57.78 from $75.84 at the end of May, leaving the apparel maker with a market cap of $5.87 billion, based on 106.6 million shares outstanding, Lululemon is once again under pressure amid reports that a quarter of the floating shares have been borrowed short. Nasdaq says short interest has jumped to 17.9 million from 10.7 million at the end of May. According to recent Investor's Daily Report, well-known short seller David Einhorn has gone short on Lululemon, a move that sent the stock tumbling 7% on June 28. Continue reading this article

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