Back in May, see chart on left, we expected this stock to drop to about $43. It got to $52, down almost $30 from the high but then rebounded in what we think is wave 2. If you still own it you should sell now since it is overbought and has closed the gap.
A year ago it looked like this stock was cooked at about $60 (post split). It did drop almost 30% but then regained its footing. Now, that is a month or so ago, it again looks like the stock has topped. At that time the p/e would have been close to 60x. At the time I compared the stock to KKD, Krispy Kream Dougnuts, the operative part in that name is “nuts”. If you have ever wondered how herding works, all you need to do is watch your better half do a little shopping in this store. The first target would be around $43.