Unfortunately for UA, this recall (while small as far as the number of products recalled) is going to carry negative implications because of the potential pain and suffering for the users of the failed product. Moreover, the timing of the recall couldn't have been worse, as UA was in the throes of a rally after it posted first-quarter earnings. The stock has rallied lately, but it still faces overhead resistance from its 10-month moving average. Of course, the shares are perched atop their 10-week and 20-week moving averages, which are on the cusp of a bullish crossover. If this intermediate-term crossover completes, it could signal a bit of a bull run for the struggling stock. What is nice is that the Street's expectations were low for UA heading into the recent report, which has helped further the equity's current bull run.

Is this rally built to last? I'm hesitant to whole-heartedly support UA here, mainly because I have been bullish in the past and the stock has left my bullish feelings empty. Nevertheless, there may be some reasons to be bullish about the firm. UA is trying to take on the larger establishment of the shoe world by with its own cross-trainers and running shoes, but the company has yet to make a dent in the armor of Nike, Adidas, and New Balance.

While I don't consider myself a retail expert, I do know a few things about shopping -- mainly because I am a consumer. UA needs to offer the same technology, style, and quality as the aforementioned brands, but they have to do it at a lower price. This goes for all their apparel along with shoes. Take it from me, I love UA's product -- their shirts are a staple of my workout attire -- but their shoes don't make it into my arsenal. Why? They are charging $89.99 for a pair of their running shoes. Sorry UA, but my Brooks cost me a lot less, and I am familiar with the brand. What about offering something a bit less expensive? I just find it very hard to dish out that kind of cabbage for a pair of shoes... at least a pair of shoes from a company that isn't known for its footwear offerings.

I really think that UA has the makings of a great company and a great stock. However, it has dug itself a hole thanks to the exorbitant price of its offerings. If the company can make some headway, we could see it achieve its potential.