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$25.02 -0.78 (-3.02%)
7/3/2008 1:01 PM

Under Armour, Inc. (UA)

CAPS Rating:
***

The Company's principal business activity is the design, development, marketing and distribution of technologically advanced, branded performance products for men, women and youth.

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Total Players

1743 Outperforms
184 Underperforms
 

All-Stars

311 Outperforms
55 Underperforms
 

Wall Street

10 Outperforms
1 Underperforms
 

Players bullish on UA are also bullish on:

Players bearish on UA are also bearish on:

Ticker Tags

Sporting Goods (20), IPO in 2005 (12), Small Cap (1922), Maryland (3), Baltimore (1), Footwear (8), CEO under 35 (18), Stocks for Jocks (4), Textile - Apparel Clothing (44), Textile - Apparel Footwear & Accessories (27)
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Under Armour, Inc. At A Glance

Current Price: $25.02
Last Trade Time: 7/3/2008 1:01 PM
Open: $0.00
Previous Close: $25.80
Daily Range: $25.00 - $26.45
52-Week Range: $24.50 - $73.40
Volume: 640,281
Market Cap: $940.49M
P/E Ratio: 27.45
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Stock Trends

UA VS S&P 500 (SPY)

UA 12 month chart vs. S&P

News & Discussion Boards

Other News Headlines for UA

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Top Bull Pitch

Recs

17

Under Armour, Inc. (UA)

Avatar TMFBreakerKevin (< 20) Submitted: 2/19/08 9:21 PM

klicken-klatschen -- wir kommen -- kannst du es hoeren?

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Top Bear Pitch

Recs

1

Under Armour, Inc. (UA)

Avatar vjdantone (90.77) Submitted: 3/24/08 9:00 AM

Another of 2007 darling stocks, UA will finally realize that it has bitten off more then it can handle with its expansion into Europe. This will prove to be a total inventory and production disaster.

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CAPS Players

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Recs

0

 (UA)

Avatar jtallenmd (35.61) Submitted: 7/02/08 10:08 PM : Outperform Start Price: $25.91 UA Score: -2.81

This is a much better starting price than was presented even just a few weeks ago. The P/E is still a little bit high and it is a consumer product, but it is building a brand that will continue to make inroads into Adidas' and Nike's market share.

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Recs

0

 (UA)

Avatar falcon2382 (99.17) Submitted: 7/02/08 5:43 PM : Outperform Start Price: $25.91 UA Score: -2.81

this is a stock I know much less about than I would like to, but I have faith in the trend and the idea. The products work--perhaps not quite as well as the culture around them, but as an athlete myself, i stand by the underarmor gear my girlfriend bought me, and today I caught myself saying "if you can find any of this stuff on sale, feel free to buy me some more... its quite good...." that's when I knew I had to do some more research into the stock.

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Recs

0

 (UA)

Avatar emeraldbull (73.07) Submitted: 7/02/08 3:05 PM : Outperform Start Price: $25.95 UA Score: -3.02

hello

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Recs

1

 (UA)

Avatar JMB21 (62.74) Submitted: 7/01/08 9:43 PM : Outperform Start Price: $26.54 UA Score: -3.69

UA was an issue that I made some money with in 2007. I sold when it looked like it was rolling over from a technical standpoint. At this point, it has rolled so far over that it looks like a good pick up from a value standpoint.
UA has strong fundamentals. It's consistent ROIC of over 15% rivals Nike's, and is very impressive for a younger company. Such a high ROIC is indicative of a competitive advantage, which I think comes down to Under Armour's brand and a product that consumers perceive to be superior. Sales and earnings growth has been remarkable, as has growth in shareholder equity, one of my favorite marks of an outstanding company. UA has grown cash flow at remarkable rates as well, although its high capital expenditures (appropriate for a young company plowing money into expansion, branding, and product development) have eliminated its free cash flow.

This lack of free cash flow for acceptable reasons is why I used a projected earnings model to value UA. If UA can grow earnings in line with analysts' expecations (25%), its p/e can come down to a very reasonable 21, and the stock would still be trading at nearly a 50% margin of safety, given a 15% discount rate. In other words, at a 15% discount rate, UA's current share price bakes in an earnings growth rate of 15%. If UA falls short of analysts' estimates by 40%, it will still meet that. So I figure the shares are a gogod buy right now.

There are, however, some significant risks associated with UA. First, as a company whose revenues are closely tied with discretionary consumer spending, UA would be expected to be quite sensitive to the economy, which is not a plus at this moment. Second, as a newcomer in a field with some heavy-hitting brands, UA's success may simply not continue as expected. Third, UA's newness and its heavy capital expenditures may make it difficult for the firm to weather some of the economic challenges that are believed to be coming down the pipe. UA doesn't have strong free cash flow to lean on, so if it wants to continue creating shareholder value in a stagnating revenue environment, it will have to cut down on capex, which will destroy its growth model.

Given UA's strong fundamentals, I think the significant margin of safety provided by its current price acceptably accounts for the risks associated with this relatively new business.

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Recs

0

 (UA)

Avatar 7uniquefools (57.73) Submitted: 7/01/08 5:07 PM : Underperform Start Price: $26.54 UA Score: 3.69

Consumer Discretionary will be down for a while. Now it's debatatble that whether this company really falls into that category. However, it's personal opinion that it may remain low, under $20

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Wall Street

Results 1 - 11 of 11  

picks per page. CHANGE Expand All Pitches

Top
Pick
Player NamePlayer RatingStart
Date
CallTime FrameStart
Price
Stock
Gain
S&P
Gain
ScorePitch
TrackGaryBSmith < 20 03/07/08 03/07/08 Outperform 3W $34.40-27.27%-2.62%-24.65
TrackCitigroup 89.76 01/14/08 01/14/08 Outperform NS $43.88-42.98%-10.52%-32.46
TrackUBS 96.25 11/20/07 11/20/07 Outperform NS $50.24-50.20%-12.30%-37.90
TrackCarisandCo 67.52 11/09/07 11/09/07 Outperform NS $45.67-45.22%-13.30%-31.91
TrackJimCramer 83.36 11/08/07 11/08/07 Underperform 3W $48.60-48.52%-14.17%+34.35
TrackRonBaron < 20 09/30/07 09/30/07 Outperform NS $59.82-58.17%-17.22%-40.96 Toggle the visibility of 60-Second Pitch and replies
TrackNCPI < 20 04/05/07 04/05/07 Outperform NS $51.97-51.86%-12.08%-39.77
TrackCreditSuiss 95.12 01/24/07 01/24/07 Outperform NS $48.47-48.38%-11.17%-37.21
TrackTobinSmith < 20 12/16/06 12/16/06 Outperform 1Y $50.62-50.57%-11.26%-39.31
TrackBofASec 96.28 11/01/06 11/01/06 Outperform NS $46.96-46.72%-8.62%-38.10
TrackTWeisel < 20 09/11/06 09/11/06 Outperform NS $34.50-27.48%-2.73%-24.74

Results 1 - 11 of 11  

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