- heavy insider selling, so much selling that the insiders don't own much stock any more.
- pushed out the CEO
- and then hired a blah CEO to replace
- product is a fad. Women will look back and wonder what the heck they were ever doing wearing ridiculous stretchy pants in public.
- heavy duty and growing competition
- loudmouth founder making PR problems: even if he's right, he's wrong to pop off.
- the stock only goes up when its ethically challenged analysts pump it.
any product that makes a women's butt look good has legs so you are missing the point here. There could be a sell off of 10% on Thursday when the numbers come out, as they might decide to clean up several items so the new CEO can start fresh, but this would be a buying opportunity.
I can see this being a bad Q, but as you stated, it becomes a value buyer's dream, especially if under 60. The new CEO being named 2 days before the ER is meant to have the opposite reaction that Ms. Day had when she announced during the last CC (not sure who thought that was a good idea). Chip's departure is definitely a house-cleaning gesture meant to instill confidence and gain back defectors from the brand. My guess is that this Q had more defectors than expected, thus a drop in sales that can hurt any momo stock. I think you see a very "blah" report, probably in the .40 range with possibly is redirect down on guidance - margins have also likely been crunched with competition. 10-15% haircut is likely, followed by an immediate rebound as this stock NEVER stays down long. I hold a strangle, so nothing long-term in this, but I would be a buyer at under 60 as long as the report is not a complete disaster.