The then (May 21) and now charts;
With almost six months gone by not that much has changed, except perhaps that we are now in a third wave down and not a first. Things should happen faster. The first and second targets remain at about $42 and $30. Ultimately lower targets than that are possible.
Just starting!
This stock trades with a P/E of about 45. It has had bad times and good times, right now the times are good. Women , for some inexplicable reason , love this stuff. In EW terms it has either completed a 5 wave sequence from the lows, or a rather oversized b-wave. Does not matter much at this point. Wave one down is clearly 5 waves so more downside should come, perhaps to as low as $35 for starters. This “yoga” attire is immensely popular and quite expensive. A great combination when things are going well. That could be the problem.
KKD, Krispy Kreme Doughnuts, the sin side of this equation, was, once upon a time, not that long ago, equally popular. Something went wrong there ; see below as a reminder of what can happen when perfection is reached. This stock is still trading at a P/E of 45.
