shorts have been in control and continue to create downtrend. they have one month left to play with the stock, but are still trying to manufacture a way to cover their position in the face of a new growth plan that will be announced on the next earnings call.
lulu fell on kate spade news about margin issues. lulu is already trading very low and just needs one decent quarter report to blowout the shorts. advent bought this asset for a 1-2 year turnaround with 100% profit. if they bought at 42 they believe it is worth at least 60 today and 80 in another year. just need to get international expansion on track and improve the product pipeline.
Retail in general is getting beaten up, sentiment will have to turn for this to soar. The growth is coming, it's inevitable. But until we hear management articulate a real plan for growth that scares shorts, we're vulnerable. I do think, the worse case scenario is low $30's. At that point the funds will jump in, it will be too low to resist. I'm just going to keep scaling in. The brand is beloved, the pe will just keep getting cheaper and the growth story is there to be realized. The money has been made on the short side. Lets hope a squeeze materializes between now and earnings to get this back where it belongs in the low $50's.