the projected numbers by a wide margin..The CEO resigning has put undue pressure on this company..LULU is currently looking for a new CEO which when found should calm the nerves of investors..
Seems when selling increases investors start to panic driving the stock down..The present price of the stock is a buying opportunity for those not afraid of LULU's rough waters..Remarks from the company would be helpful to calm the panic nature now facing LULU..GLTA
I don't think it's totally unwarranted. The CEO abruptly announced that she's leaving without a hint of who will be replacing her; in fact they didn't start a search committee until after the announcement. The luon issue is apparently ongoing if you read recent reviews of their latest products...their pants look painted on the models. Lastly, insiders have been dumping shares all quarter. Trailing 6-months it's been a net sale of 12.2%. These are not fundamental strengths that would get me to invest on the long side. I'll stay short until I see some bullish signs.
this kind of sell-off happens every time when c-level officer quits, especially CEO. Investors hate uncertainty. It has nothing or little to do with the financial performance. Of course, the Q report could only worsen the sell-off if it is a bad one. In case of LULU, the stock will not start recovering until a CEO is appointed. The only exception would be a buyout from big names. Wish good lucky to hold. Low 60s shows very good support. The new CEO appointing should happens before next Q report because DOB is not facing huge pressure from shareholders. By then, we might see 70s again. BTW, my pure speculation, If everything goes well LULU will be over 100 next year.
I'm sorry carv1007 but your post is somewhat ignorant in that they beat vastly reduced estimates. The stock was gamed up from the high $60's to the low $80's after the black luon issue was announced and the estimates vastly reduced and the gaming and short squeeze then occurred so the stock basically did a round trip to where it was when the estimates were reduced.
You can't ignore the fact that a short squeeze occurred off of bad news. The question now is how long did this quality issue exist for and are there continuing quality issues?
I'm out of my last puts as of yesterday but this may see the $50's again soon.
I wouldn't mind seeing it rally so I can get a chance to reenter either puts or a short on no material news.
To say my comments are ignorant is a tad over the top..When the numbers came knowone said that LULU's estimates had been lowered allowing the numbers to beat prior estimates..The selloff began when the CEO first announced her resignation..The material news then followed and continues today as LULU is searching for a replacement to run the company..