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Did Under Armour rob America of gold?

Did Under Armour rob America's gold?

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Did Under Armour rob America's gold?

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Under Armour is the reason why the US Olympic speedskating team is doing terribly on the ice in Sochi.

Well, that's why the USA Speed Skating is claiming. In fact, they submitted a request to Olympic officials to allow the team a chance to change their suits. That comes after the USS issued a statement earlier saying:

"The evidence does not suggest that the suits have contributed to the disappointing results to date. However, there are many factors that determine Olympic success and we are constantly making adjustments to improve results. We’re working with our athletes, coaches, trainers and Under Armour to figure out what we can do to produce better results for Team USA at these Winter Olympic Games."

(Read: US struggling at oval, focus on high-tech suits)

Under Armour's Mach 39 suit was developed with aerospace giant Lockheed Martin. The problem came from vents in the suit that were meant to allow air to escape. Instead, air was coming in, creating a drag on the athletes.

Some skaters even sought tailoring to repair improve the situation but with no such luck. Team USA has yet to medal in the even this year. In fact, the highest placement for an American so far was Heather Richardson who placed 7th in the Ladies' 1000m. In 2010, the team won a total of four medals.

Meanwhile, though Under Armour's shares are up an astounding 25% in the past month thanks to a blow-out earnings report, the stock took a 2% hit today in part due to the skating team's woes.

Yet Morningstar Analyst Equity Analyst Paul Swinand believes this may really be good news for Under Armour.

"I actually think it's a positive because they are the small player," says Swinand on CNBC's Street Signs' Talking Numbers segment. "If they weren't being talked about, that would be a big negative."

Under Armour would gain a lot of good publicity should the speed skating team win after reverting to its old suit, according to Swinand. That's because those old suits were also made by Under Armour.

(See: CNBC's Business of the Olympics coverage)

Ryan Detrick, Chief Technical Strategist at Schaeffer's Investment Research, says the Under Armour's stock remains a buy based on its technicals. He is particularly optimistic because Under Armour's stock recently broke out of a several month-long trading range.

"We could argue the suits maybe cost the US some gold medals potentially," says Detrick. "But, at the same time, it doesn't mean you don't want to buy [the stock] here."

To see the full discussion on Under Armour with Swinand on the fundamentals and Detrick on the technicals, watch the video above.

 

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