I too have profited well the past few years by holding UA. Yes, it is always over priced and the P/E ratio is always too high. However, check out the 5 year stock price growth of UA and compare it with your other stocks. You will find few steady growing equals.
Let me share why I continue to hold UA…and even add at times during dips:
Our 21 year old son is an excellent golfer on scholarship in college. One of his buddies is Jordan Spieth. Both are from Texas. Jordan spent one year at UT before turning pro and led the golf team to a national championship…he was all of 18. He is now 20, on the PGA tour, and ranked #5 in the world. You will soon see him representing his country in the prestigious Ryder Cup. He is a budding future “Tiger” and will win some majors very soon. Remember what Tiger did for Nike’s image?
Jordan has a long term contract with UA and every time you see a major golf tournament, you will see Jordan on the leader board with all his UA logos on everything…hat, shirt, pants, belt buckle, shoes, and golf bag. And he is a class act.
Notre Dame just recently signed a long term contract with UA to be an official UA college representative of UA.
Our son loves everything UA makes from underwear to outer wear. It is just a cut above everything else. His buddies are the same. I see a lot of young people and old farts like myself wearing an increasing amount of UA for daily wear…and have for the past 10 years. Women seem to love their footwear. It is more expensive, but even here in the oil patch, Bubba likes UA. I expect UA to be as large or larger than Nike in 10 years. Did anyone notice all the UA apparel worn at the Winter Olympics? In this years Master’s golf tournament the highest finishing amateur was a young man from Britain…who was also plastered with UA logos.
UA just released their second quarter earning and as usual hit it out of the park. In fact, UA just experienced their 20th consecutive quarter beating earnings estimates. Their international growth is just now beginning to take off, experiencing an 80% increase And yet they are a tiny young company compared to Nike. But their explosive growth reminds me of Apple in their beginning years.
The UA website is first class and their follow up after placing an order reminds me of Apple’s service. Superior product combined with superior service equals explosive growth in any industry. I recommend every potential UA investor to order a couple of UA items and see if you appreciate the unique packaging and high quality of the product.
I hope some of you will take a serious look at UA. The macro picture looks awfully good to me. And you should read Karl Thiel’s excellent report on UA that came out in RB’s Friday.
Just some food for thought on a new one for us to consider.