 Welcome back to the long and the short presented by trade station trade station is a leading fintech company and online broker providing an award-winning trading and investing experience with support education and tools to help you navigate the markets. Yes. Okay. Well, it's time for our original roundup on this Tuesday. Top stories in the industry are grabbing Wall Street's attention and we are going to break them all down. For sportswear apparel company Lululemon is scheduled to report fiscal and fourth quarter financial results Wednesday after the market closes. And with us now is Melissa Armo. She's the owner at the Stock Swoosh and Todd for its chief strategist at Bubba Trading. It's great to have you both with us. Good morning. Melissa, we'll start with you. Shares of this stock up 80% for the year you expect this earnings report to meet expectations. I think people are expecting that because the stocks have been doing so well. When you look at Alphaletic Apparel, again, we're going to talk about Nike. I mean, you say this stock has been doing fantastic. It's an enough trend. It's about $20 off the high or was it around 1.48 this morning previous high was last summer. It was around 1.64. If this stock gaps up on Wednesday after the earnings, I'm telling you, it's going to be a good solid long and could make new highs, but it may not. And if it doesn't, then it could fall because people are expecting that it's going to report well. Lululemon, one of those brands that has really been able to excel in its direct to consumer strategy and put pressure on its competitors in the space as well to also adapt to that kind of strategy. Todd, I want to get your thoughts around this as well. Lululemon, what are you expecting? What are you looking out for? Good morning. There's been some downgrades on Lululemon recently, but the stock itself looks really solid. It looks to me that they're pricing in not great earnings as we're at the bottom end of the recent range. However, it's holding up support real well. And if you take into consideration that they just a couple of analysts downgraded it like last night, the stock is still holding up really well at these prices. So I think almost no matter what happens, the stock will move higher. Now, again, I think that probably that will be a push and you can probably see some sun because it is a luxury brand from that space. So I think that from the earnings perspective, I would expect to see the stock move higher no matter what earnings are, unless it's a horrible miss. I don't expect that. And certainly the stock itself, based on the way it's trading, does not expect that either. Yeah, the stock hasn't been doing a heck of a whole lot over the past month or so. We can pull up a longer term stock chart on our trading platform here, a one year chart that still does show the nice gains that we've seen over the past 12 months. And so Melissa, when this company does report earnings, what are you going to be watching for? I want to just see it get up anywhere at all. I mean, really even 150, which is only $2 away from this morning is a nice buy because, again, it's not that far off the highs. And right now the market's bullish. And what you want to do if you're going to get long something is get long bullish stocks with a bullish market. That makes for good nice long-term place. But any gap down would be a negative for this, literally anywhere at all. So I would watch this. And as you were saying earlier, they've done a good job. It's about the lifestyle. Yeah. If you ever walk by those stores, it's yoga, it's exercise, it's athletic where you wear out just if you're walking and shopping. That's what they've made you want to buy their clothes, even though it's a little bit pricey, because you think, well, it's like the lifestyle. And they've done a good job with that. It's a different story than Nike where Nike was coming into, from a stock perspective at least, where Nike was coming into their last earnings report on an all-time high. And they were writing that. And you saw perhaps a bit of a sell-off there afterwards, also coupled with the fact that it was a mixed report and it was lackluster. Todd, comparing this to Nike and kind of pivoting a little bit more over to Nike, we've had a lot of headlines come out over the past 24 hours. But particularly with Nike, how do they continue to compete? And what are you looking out for from a stock and trading perspective as well? I think Nike's on a roll, and I think it continues to go higher. I think as a Michael Avanade, I think it's a bunch of garbage. And of course, there's always some smoke and fire where you hear these stories. And we've known this for years about college athletics and some of the payoffs that go on. But I think Michael Avanade's story is ridiculous. I think the stock is only going to benefit from just a lot more publicity, and it will bring in more buyers. The stock continues to move higher. It survived, but it didn't survive. It actually thrived on the Colin Kaepernick stories. And I think it's going to continue to go higher. I mean, look, they're still in that age group, the millennial group, especially. They're the number one secret. And of course, you've got great endorses behind it. I look for the stock to continue to move higher. I just think it's such a different story, though. Michael Avanade and the information that he may have had on Nike trying to extort them, that seems like it points more towards what we saw with the Adidas and college scandal play rather than Colin Kaepernick, where that was clearly trying to make sure that they were attacking and annexing their brand onto what was sure, some regarded as polarizing, but a very socially conscious move from Nike's perspective. Melissa, we were talking about this before we started the segment as well. Your thoughts on Avanade and Nike? It's very interesting. Only Michael Avanade would have the hubris to go after Nike, which is the most valuable apparel brand in the world, worth 32 billion. So the 20 million that he was trying to extort from them is about 6% of what he wanted to do. If you looked at some of the texts, they have them on tape. He said he wouldn't settle for a couple million. I don't know if you read that. I mean, only he would have the hubris to go after a company like this. I think that he potentially risked jail time. Not only that, but California is going after him because he submitted fraudulent loan documents and received a loan. I think that's even more dangerous than what happened with Nike. I think Nike stock is going to be fine, even though it got down, it fell like Friday really because of the market. But as far as Michael Avanade goes, I think he's looking for some serious jail time, more so because of the bank fraud than even the extortion with Nike, although I don't know the legalities of the extortion thing, but he submitted documents that he filed the tax return and paid, that he made 14 million with the company and paid 2 million taxes, and it turns out not only did he not pay 2 million, he didn't even file the return, and people's bank was who gave him the loan. Now people's bank and how it works when I used to do mortgages, when you apply for a loan, you fill out a form, it's called a 4506T. The bank is supposed to send it to the IRS to verify that the information that you sent for the returns is actually valid. Either they didn't do it or they did it after the fact. So what happens is say you submit a loan and you get a proof of the loan, you do the loan and the bank doesn't check the validity of what you reported for your income, that's a crime and the bank can call the note. And so now they've got California involved with this and I think that is even more serious than what's happened with Nike, although again, Nike did the right thing. I mean by going and reporting this, Nike could have hit it under the carpet, and they could have paid them something to keep them off, but I mean the guy put on Twitter that he was going to have this meeting. I mean this is what I'm saying, I mean what could they possibly expect, could come out of this, how could he possibly expect anything good to come out of this? And I think it's going to be very interesting, I don't think we've heard the end of Michael Avenatti, and I think it's going to be a lot of news to watch in the coming days of what's happened. Story Daniels came out and said she fired him a month ago and she said there's more to come. We're going to be talking about this a little bit more later in the show, but I think your point is such a good one, Melissa, right? The strongest brands out there in the entire country, the Nike brand, and the stock up today still near an all-time high. Melissa Armo, owner at the Stock Swoosh, and Ty Horowitz, Chief Strategist at Bubba Trading. Thanks again for joining us. Alright guys, and coming up Apple's bet on gaming, will Apple Arcade be the next big thing, or is it going to be a total flop? Well, that's on the other side of the break, don't go anywhere.