eastunder
19 년 전
Personally, I do. Especially if I am looking at it long.
I would buy it in pieces though and not take my whole position at once in case it still has some dropping. The chart I posted should start to develop a red area down below that 80 line, just like it did when it was above the 20 line. That was the overbought line and we have dropped to oversold line.
I thought earnings were pretty good. I suppose it's not enough to justify the PPS UARM was at but to me this whole story is just getting started with UARM. They are really branching out. I liked the youth category growing 70%. I thought that was wonderful. What did you think about the earnings?
I would imagine that during the day or this week we should be getting downgrades, holds, or something from analysts that will give me a better idea of what price traget they are looking at... but that gap down was an opportunity, Imho.
sirotka3
19 년 전
I think it's going to kick butt on Feb 7th. It is the 'hot' stock and 'hot' clothing for any one interested in losing weight, working out, playing sports.
As a 22 year old, I can easily see this being the new Nike if they make the right moves. They have the marketing and momentum.
Nike, Reebok, etc. have taken notice of UARM too...I think if UARM comes out with news of entering the sneaker/cleat business (aka main stream shoes)...we are golden
It's a machine that can't be stopped at that point...they just have to break the barrier to entry and then it's smooth sailing for us loyalists.
eastunder
19 년 전
Schaeffer's Daily Market Blog Features Learning Tree International, The Dress Barn, McDermott, Under Armour, and iShares MSCI Japan Index Fund
2:16 PM Under Armour May Still Have More Upside
Put options on newly traded public company Under Armour (NASDAQ:UARM) are active today as the company is pulling back from highs near the $40 mark reached yesterday. In fact, more than six times the average put volume for UARM has changed hands thus far today. This high level of pessimism toward the security could make today's pullback a good buying opportunity given the strong upward trend of late.
eastunder
19 년 전
Agree. We have other things to consider. Like how our Dec will effect the Quarter, that it's not only a winter product but an all year round product, and what the potential is for forward splits at some point down the road.
Plus, I have always liked the product but never paid much attention to where it sits in stores and how many items are offered. In Dicks, UA was all over the place. Even folded on tables in the Center of the aisles as you moved around the place.
I also noticed a movie the other day where the insignia was on hats, shirts and background billboards. Never caught that before owning the stock. Now I am paying attention. They seem to be doing excellent marketing.
Cramer is really plugging it on his show as being the best of breed, as well, so I think we have some real positives happening here.
Opinion?
eastunder
19 년 전
http://aolsvc.news.aol.com/business/article.adp?id=20051118165709990007
Under Armour Posts Gains in Trading
WASHINGTON (AP) - Under Armour Inc. scored a touchdown Friday with a sharp price gain in its first day of trading, overshadowing the initial public offerings of insurer Amerisafe Inc. and Dover Saddlery Inc.
Under Armour, a Baltimore-based maker of athletic wear, closed at $25.30 a share, up 95 percent from its IPO price of $13 a share for 12.1 million shares.
Under Armour's performance ranks as the second-best debut of an IPO in the U.S. market this year, after that of Chinese search engine Baidu.com Inc. It also marks the best first-day performance of a U.S. company since semiconductor company Transmeta Corp. gained 115 percent on its first day of trading in November 2000, according to data from Thomson Financial.
The stock had opened at $31 a share earlier Friday, more than double its IPO price.
The offering price came in above the expected price range of $10 a share to $12 a share. Goldman Sachs Group Inc. raised the projected price range for the stock on Tuesday from its previous level of $7.50 a share to $9.50 a share.
Under Armour sells its garments to athletes and weekend warriors alike.
Investors have indicated a keen interest this year in specialty athletic gear and retailers, with IPOs from Zumiez Inc. and Volcom Inc. producing double-digit percentage gains on their first days of trading. Volcom designs surfing and skateboard apparel, while Zumiez operates retail shops dedicated to selling such clothing.
Under Armour, which was founded in 1995 by former University of Maryland football player Kevin Plank, focuses on clothing that wicks away sweat and cuts down on chafing during exercise. It has seen its revenue rise 127 percent a year. It reported net income of $12.7 million in the first nine months of 2005 on net revenue of $193.8 million, compared with net income of $10.2 million and revenue of $135.5 million in the same period of 2004.
DeRidder, La.-based Amerisafe's stock closed at $9, flat with its offer price on the Nasdaq.
The offering price for the 8 million shares came in at the low end of the expected price range of $9 to $11 set by underwriters Friedman Billings Ramsey Group Inc. and William Blair & Co.
Amerisafe, which began operations in 1986, specializes in worker's compensation insurance for small and mid-sized businesses in hazardous industries like logging and construction. It's a higher-rate business that can command three times the average insurance rates, and the company may see higher revenue in the months ahead as post-hurricane construction activity increases in affected areas of the Gulf Coast.
But the broader trends of improving rate and risk selection that began in 2000 started to slow last year, and Amerisafe states in its prospectus that more price competition from rivals may lie ahead. The company reported total revenue of $203.1 million and net income of $526,000 in the first nine months of 2005, compared with revenue of $182 million and net income of $6.8 million in the same period of 2004.
Dover Saddlery, an equestrian-products retailer, closed at $10.25 a share, up 2.5 percent from its offer price of $10 a share.
The Littleton, Mass.-based company sold 2.75 million shares through W.R. Hambrecht & Co.'s auction process. The price came in at the low end of its expected price range of $10 to $14, which was reduced Thursday from its previous level of $12 to $16.
The company plans to use the proceeds from its IPO to open more retail stores - it now has four - as it tries to grab more market share in an industry that has traditionally been served by small shops. It reported net revenue of $44.5 million and net income of $635,000 in the first nine months of 2005, compared with revenue of $42 million and net income of $1.1 million in the same period of 2004. The company says in its prospectus that the cost of opening new stores contributed to the decline in profits this year.
Two other IPOs - that of Actions Semiconductor Co. and IntraLinks Inc. - never made it to the pricing stage Thursday night. Actions Semiconductor, a Chinese designer of chips for MP3 players, cut its price range to $8 a share to $9 a share after underwriter Credit Suisse First Boston Corp. couldn't attract enough interest at the $9.50 a share to $11.50 a share range. The offering is now scheduled to price on Monday.
IntraLinks, a New York City company that provides Web-based work areas to help businesses share information online, postponed its deal indefinitely, citing market conditions.
eastunder
19 년 전
http://www.thestreet.com
Under Armour's Jacked Up
By TSC Staff
11/18/2005 3:08 PM EST
Under Armour (UARM:Nasdaq - commentary - research - Cramer's Take) is like Transmeta (TMTA:Nasdaq - commentary - research - Cramer's Take) in no way, save one -- the last company to see a first-day pop of 100% was the microprocessor outfit five years ago, until now.
The Baltimore-based athletic apparel maker priced an IPO of 12.1 million shares at $13 each, but the stock hasn't even been close to that puny level.
Under Armour's shares opened at $31 and were lately going for $25.62, up $12.62 from the pricing. Nearly 16 million shares had traded.
Under Armour was founded by 33-year-old Kevin Plank, a former football player at the University of Maryland and the company's CEO. Known for its "protect this house" catch phrase, Under Armour sells socks, shirts, shorts and other sports clothes.
The company supplies Major League Lacrosse, Major League Soccer, the National Hockey League, USA Baseball and the U.S. Ski Team. Under Armour is also worn by numerous NFL and college football players, the company says.
eastunder
19 년 전
http://aol.fool.com
Under Armour Over the Top
By W.D. Crotty (TMFWD40)
November 18, 2005
If Thursday's post-IPO trading in solar cell company SunPower (Nasdaq: SPWR) didn't amaze you, then the trading in Under Armour (Nasdaq: UARM) certainly should.
This company with the funny name is not in the underarm deodorant business, nor is it providing armor for the vehicles in Iraq, but maybe it can expand into one of those areas with all of the cash it raked in from its initial public offering. No, these folks are in the athletic apparel business. But they did start off with a T-shirt that would supposedly "wick perspiration off your skin." The rest is microfiber history.
Don't snicker. This company has grown sales from $5 million in 2000 to $263.4 million for the 12 months ended Sept. 30, 2005. That's a 121% compounded annual growth rate (CAGR). Operating income has followed suit, compounding at 121% over the comparable period.
The marketing strategy starts with its products to professional sports leagues, major collegiate teams, and Olympic athletes. High-profile athletic use strengthens the brand authenticity and, therefore, consumer demand. The Army and Air Force Exchange services, Dick's Sporting Goods (NYSE: DKS), and The Sports Authority (NYSE: TSA) are the top customers, accounting for 36% of sales.
Ah, but what about the IPO?
Originally priced at a maximum of $9.50 a share in early November, the price was subsequently raised to a maximum of $12 just before the IPO. To the company's credit, the offering sold for $13 a share.
The opening trade went to $31 -- a whopping 138.5% move. And the stock kept rising, to $40 -- that is up an amazing 207.7% -- before gravity took hold and sent the stock back down toward the mid-$20 range.
So, what are investors buying?
The company will have 46.4 million shares outstanding. Earnings for the first nine months equaled $0.29 per fully diluted share. Working under the assumption that third- and fourth-quarter earnings generate approximately 65% of sales, as has been the case for the past two years, and margins hold at around a historically reasonable 7%, we'll get something like $0.47 a stub. That prices the company at about 28 times its initial offering price and 56 times its current price.
Now let's compare Under Armour with its competitors. Nike (NYSE: NKE) and Reebok (NYSE: RBK) trade for 17.2 and 14.7 times trailing earnings and have posted five-year trailing CAGR to net income figures of 59.9% and 77.1%, respectively, while Under Armour has managed 104%. That extra growth, especially from such a small base, is hardly worth today's earnings multiple.
Oh, and don't overlook 4.1 million stock options priced at $2.87 a share and another 3 million approved for issuance. As attractive as Under Armour the company is, investors should realize there are plenty of examples this year of hot IPOs that fizzled in a matter of weeks.
And for those intrigued by the growth the company has shown and the prospect of future growth along these lines, there is one other reason to worry about this stock's price. Unlike Thursday's bottle-rocket performance from SunPower, there is no patent base for the fabric that is the cornerstone of this company's success. Deep pockets at Nike or Adidas (which is buying Reebok), or anyone else manufacturing athletic gear, could turn their attention in this company's direction. At current trading levels, Under Armour is a high-risk stock.