...the subject of whether nike has tried to buy under armour came up. a question was posed and the ceo did not deny it...according to press reports he skirted the question
"During the meeting, shareholders peppered Under executives with questions about the company ......if Nike has tried to buy the company......Plank never really said if Nike has offered to buy them. He said the company would do what is best for the shareholders and that he sees a strong future for the company."
seems as though he could have simply said no there was no attempt....thus one can speculate that there has been some type of attempt to buy ua.
anyone with two eyes can see that under armour is a tremendous threat to nike. sometime check out what people are wearing at your gym, at the airport, on the street....increasingly ua if you have not noticed.
that nike would have not approached under armour would surprise me given ua's depressed stock price. still if there was a serious attempt there would have been some more buzz about it and shareholders would have been informed, but its been kept on the down low apparently as perhaps the discussions may have been only at the earliest stages. since ultimately the ceo would decide if this was ever to take place given his voting control maybe the discussions never got serious.
I agree the CEO is no dummy.... he built the company from nothing which counts for something.... he was smart enough to dump shares at $59 much to the chagrin of Cramer who has not said a good word about UA since.....also since that CEO sale the stock ultimately lost almost 80 percent of its value before heading back up.... at $20 per share it is still down more than 60 percent... so yes he was quite smart in knowing when to sell his shares...of course he lost a lot of believers with that sale...
Has the company been smart with promoting running shoes? No, not in my estimation. Was the company smart putting their basketball eggs in the unproven young dollar? TBD but how insignificant to his team to not even make the playoff roster. But hey he still could become the Kornikova of basketball. TBD as noted for sure but UA would have been smarter to have enlisted Chicago's Rose last year and start getting the bball merchandise revenue this year.
So the report card is mixed.... sometimes the CEO just comes across as a dumb jock which is reflected in some of UA's marketing campaigns....(also in the stupid names for the running shoes)....other times the company seems to make bold brilliant moves.... long term, UA has bright prospects but the company needs to earn respect and demonstrate maturity.... the way they have handled this economic downtrun thus far is showing some of the necessary ingredients..... time will tell... as for intrigue re this stock, not much really, it is pretty much ignored and rarely if ever mentioned. yawn.
still good luck fellow longs.... just think this is going to be a boring stock for a while.....
with today's dip, bought some more shares today and am thinking of maybe just selling some covered calls
'“We believe we are going to be here for a very long time and believe the consumer continues to vote for us,” Plank said in an interview following the meeting. “That’s a vision that’s much bigger than [quarter] 2, Q3, Q4 of 2009.”
Another shareholder asked if top competitor and giant Nike Inc. (NYSE: NKE) had tried to acquire the company.
Plank skirted around the question and said the company would do what's best for shareholders and is still thinking long-term."
Quoting the CEO does not count as press, it is propaganda. And if the vision is so stunning, why do they not share it and their outlook for 2009. Oh, wait, senior management needed time to dump their shares.