NEW YORK (TheStreet) -- Lululemon (LULU) pants caused customers undue exposure, but the company doesn't face additional legal risks. And that is reason for investors to put the see-through pants saga that culminated in a recall last year behind them, say cashtaggers on StockTwits.com.
A judge said Friday that investors in the athletic wear company should not be allowed to sue for management allegedly failing to disclose problems with the opacity of some black yoga pants. The stock edged higher Friday after news of the judge's draft decision, but plunged more than 4% on Monday.
$LULU nothing has changed & the stock is bullish, this is nothing more than what I call a 'micro pullback' or 'fractal pullback' on move up-- So Generous (@sogenerous) Apr. 7 at 12:18 PM
Many investors on StockTwits.com said the selloff was overdone. Sentiment on Lululemon is 95% bullish, despite the recent weakness. Many are buying what they see as an opportunity to get shares for cheap.
$LULU added another 1/3 position here. Will add another third at 49.5 if we get there-- LongandShort (@lngndshrt) Apr. 7 at 12:23 PM
StockTwits investors argued Monday that the company's turnaround is working. They see hopeful signs in the company's direct to consumer sales, which climbed 25% in the fourth quarter from the same period a year ago, according to last month's quarterly report. And they say that fourth quarter net revenue growth of 7%, for a total of $521 million, wasn't bad for a brand that suffered an image crisis last year.