UA misses on Quarter now under $20

Has anyone been following UA over the last year? Now that it has fallen under $20 it has caught my eye. Do people see any positives that will benefit the company in 2017, or will it continue to be a sinking ship.

Revenue is still trending positive:

2012 1,835
2013 2,332
2014 3,084
2015 3,963
TTM 4,691

Debt not too bad at .41

2 Likes

Whatever happened to UA’s historic prices? Yahoo and Google only show from Feb 2, 2016.

Denny Schlesinger

Try UAA, see if that works.

Rob

Whatever happened to UA’s historic prices? Yahoo and Google only show from Feb 2, 2016.

I think it was when they made the last ticker symbol changes for the different class of shares (UA, UAA, UAC), I can’t even keep track of what’s the current one, very annoying.

1 Like

Basically, ticker UA corresponds to nonvoting shares of Under Armour. This was originally listed as UA.C

Ticker UAA corresponds to voting shares of Under Armour. UAA has less price history due to the weird stock split, where UA shares were turned into UAA shares. UA.C shares were turned into UA shares. UA.B shares, which have a ridiculous amount of voting power for the CEO, are still not purchasable over the market.

In essence, to purchase UAA shares and have voting rights, as limited as those voting rights are, you are paying a premium for the Under Armour stock. On major upward stock price momentum, UAA gains will outpace UA gains. For the market timers out there, any time you can find UAA stock at close to the UA price, it is definitely worth it. The premium for UAA right now is about 10% more. After the stock price has run up a ways, that premium can be closer to 20% or more.

2 Likes

Try UAA, see if that works.

Thanks! It works.

Denny Schlesinger

UA another SA pick.

I bailed last year when Sports Authority went under.

It was also the discussion going on and the info by a guy I respected on the AMZN boards that really gave me the info I needed. Retail, espcecially traditional retail was in big trouble.
I sold.

So what now. UA had hyper growth and then it hit a wall. Going from a 5 billion company to a 10 billion company is really hard to do, especially when you are going against Nike and Adidas. You have to spend your way to get there. That is the CEO, Plank’s goal and he will probably get there, but it’s going to drain the piggy bank to get there. Not ride I would be interested in taking, especially since the stock is still relatively expensive in comparison to Nike.

The other battle they are losing is the fastest growing category in athletic retail apparel, and that is athletic lifestyle. Lululemon is winning that battle, at the same time UA is losing women. Just look at LULU’s latest earnings as compared to UA’s today.

Lastly the CFO announces his departure today. Most likely a mutual decision, but still not very good news.

So would I invest in UA? I’ll answer that this way.

Why would I? Anyone?

Chris

4 Likes

Ticker UAA corresponds to voting shares of Under Armour. UAA has less price history due to the weird stock split, where UA shares were turned into UAA shares. UA.C shares were turned into UA shares. UA.B shares, which have a ridiculous amount of voting power for the CEO, are still not purchasable over the market.

This is essentially a poison pill and I avoid companies that use them.

Denny Schlesinger

1 Like

Has anyone been following UA over the last year? Now that it has fallen under $20 it has caught my eye. Do people see any positives that will benefit the company in 2017, or will it continue to be a sinking ship.

I vote sinking ship, and would strongly advise thinking twice. Kind of similar to the CMG thing. They had a great run when they were hot, but do they really have a way to sustain crazy growth and margins for the long term? I don’t know. I doubt it. Even if they’re the next Nike…Nike sure doesn’t grow at 20% every year. It seems like it was just bound to come to an end sooner or later. And when you’ve got that much optimism baked into a stock, it’s a big fall.

Same question for SKX, really: why should we expect sales to start growing at 20-30% again? Answer: we probably shouldn’t.

What I do know: like CMG, they’re still not cheap. Actually, quite the opposite. The shares lost 26% today and the PE is still 38.

Bear

3 Likes

So would I invest in UA? I’ll answer that this way.

Because Fashion is fad. Nike is now old-school and UA is the choice of the young and hip. Steph Curry, and the young atheletic kids I see. They will continue to sport UA until it grows uncool, and that should be awhile. Saul aptly pointed out it had a crazy value compared to Sketchers, but it also has the cool, must have thing that sketchers can NEVER have. Sketchers is for old, comfort seeking people like us, UA is for the kids, for the future stars. That really is worth something. At this price it is worth a long-term position in your portfolio.

Amazon lost money on every book it sold when it started, how did it make a profit? volume, volume, volume! :wink: in ten years, UA could have proven to out perform the S&P by a large amount. Don’t poo-poo it.

Pete

10 Likes

I agree with UA being the “cool” thing for kids to wear. I also believe that this will stick with that generation as they grow older. In my generation, Nike was the cool athletic apparel to have and to this day, my first go-to choice for sneakers is Nike.

Also, don’t forget that UA has signed multiple team deals in the college ranks (Notre Dame, Navy, etc.) to provide their uniforms and all team gear.

UA will also be outfitting all of Major League Baseball beginning in 2020. The growth in UA may have slowed for the time being, but this company is not going anywhere and when the growth returns you will miss it by being “on the sidelines”. It may take a couple of quarters for them to get their groove back and when they do it will be a “monster” beat on earnings and a huge one-day gain.

http://www.baltimoresun.com/business/bs-bz-under-armour-base…

6 Likes