Currently, UA has a market cap of $18 billion and Nike is at $80 billion.
Under Armour has a long ways to go to catch Nike. But, I like their products more, and I am not alone. It is a real possibility that UA can catch up to Nike in due time. They need to start capturing more market share with the female gender….
AWR has been in the process of making a bottom after selling off from the all-time high of $47.24 on February 19. The stock has been trading under $40 since mid-March and bouncing around between $38 and $40 for the better part of the month. On Friday, AWR closed over $40 since March 16. Does this mean AWR has made a bottom? Is is through trading under $40? Will we get another chance to buy under $40?
Nobody knows the answer to these questions. However, we do know that the price today is much more attractive than back in February when AWR was trading over $45. I have been adding under $40 as I believe the stock is undervalued at those levels.
Long term, this stock is a great hold for a retirement portfolio.
Jordan was not the only guy enduring shoes in the 1990's Allen Iverson had a huge deal with Reebock. Bo Jackson, John McEnroe, Wayne Gretzky, and many others had endorsement deals. I remember as a kid having Joe Lapchik sneakers from Converse. This is not a new concept.
The NBA has expanded greatly since the Jordan era. China is getting into the NBA in a big way. I hear there are a few Chinese folks over there. Maybe, they buy shoes too? Europe is another hotspot for the NBA. Steph Curry is the most popular player on the planet. He will sell a ton of stuff for UA. Make no mistake about it...
He will sell more shoes for UA than Michael Jordan did for Nike. That is quite a statement as MJ and Tiger drove Nike to great heights in the 1990's and 2000's. But, now it is Under Armour's turn.
The reason Steph will outsell Mike is that the NBA is now a more global sport. There are way more people following basketball than 20 years ago. I have seen many youth basketball games, and the kids now are emulating Steph Curry. They shoot three point shots, pound their chest, and chew on their mouthguard. Also, they wear Steph Curry shoes.
Also, Steph Curry is a far better role model for kids than MJJ ever was. The mothers of the world will not be resistant to buy their children Steph Curry shoes because of any peccadilloes. Enjoy the ride UA longs...
Sales of Curry shoes are through the roof. He is the new Jordan, and Under Armour has him signed. Nike blew their presentation with him, and it is costing them billions.
As a UA long I love that story...
Congrats on a great trade! You can never go wrong taking profits.
I believe at $50 RPM is fully valued for this fiscal year. However, the markets typically go from one extreme to the other. The stock may make new highs, and could go 5%-10% higher? Many people have been burned trying to make that last 5%!
Those who bought under $38 in February are sitting on more than a 30% gain in two months. The stock will pull back at some point, and present another buying opportunity. Why take the chance? Lock in profits, and wait for better opportunities.
Oh by the way, I still believe RPM is a great long-term hold for a retirement portfilio. They have rock solid management, and a steady core business model. I am in no way bashing the company.
It's just that I believe the stock is getting a bit too hot to handle, and nothing goes straight up. Like knocking the froth off an ice cold beer... Take profits folks...
Jordan Spieth is worth every penny. Think about what Tiger Woods and Michael Jordan did for Nike.
Jordan Spieth and Steph Curry will do even more for UA.
Spieth is a walking billboard for UA. There are a ton of folks who buy UA gear because of him.
Think longer term...
I travel quite a bit, and have noticed people of all ages wearing Under Armour gear.
Men, women, kids, and adults all wearing UA gear. I see golfers, football and basketball fans wearing UA gear.
The downgrade is unwarranted IMHO!
UA is adding market share and not losing it….
This is a game played by Wall Street professionals.
This is just noise for long term holders of this stock.
I respect your position, and you can never go broke taking profits. I just accumulate stock to bequeath to my children. Therefore, I am not a good model to follow. Wells Fargo has a share owner program that purchases stock for me and I have four other equities that I purchase monthly.
RPM was a steal under $40, and now is getting a bit overbought. If you are a trader then it may be wise to lock in some profits at this time?
I do not place much weight on P/E ratios as they make no sense to me, and if they did anyone with a calculator could master the stock market. Take a look at GILD or AAPL with their minuscule P/E ratios and compare them to their competitors BMY and GOOG. It does not make any sense.
RPM is a slow and steady grower, and has outperformed the S&P 500 during good and bad times. There is no reason to believe this will not continue.
The EPS report was solid as revenue topped estimates, and the company reaffirmed $2.50 EPS for this year. The consumer market is strong, and providing solid margins. The industrial space is a bit more challenging, and will remain flat for the year. Mr. Sullivan said he did expect the industrial side to pick up in 2017.
Europe and the Middle East has been challenging for many reasons. The biggest issue is the currency fluctuations.
RPM is innovating in their paint space, and will benefit from R&D in the paint niche market space, and the innovation R&D provides for the future.
Overall, RPM is plugging along, and is benefitting from outstanding leadership. This is a long term hold in a retirement portfolio. The stock has crushed the S&P 500 for the past 15 years.
AWR is pretty transparent, and you can find plenty of information from their website.
Here is one I found:
Invest in your community. Over the last two years, Golden State Water Company
(our utility subsidiary) spent $160 million on upgrading its water and electric
infrastructure and American States Utility Services (our contracted services
subsidiary) spent $142 million constructing and renewing water and wastewater
systems for the nine military bases we serve. In 2015, Golden State Water Company
alone expects to spend $85-$95 million of capital expenditures, including $7 million
for its electric division, Bear Valley Electric Service. That means new pipes and
power lines, but it also means new construction jobs—
That is the question many are asking. AWR like all companies must budget for CapEX spending for infrastructure improvements, and they are doing. AWR has been budgeting to replace old pipes one pipe at a time. You can learn about their progress from their website as they have provided many presentations on how they plan to improve their water supply and grow contracts.
I believe the greater threat to their business was the drought in California. The firm boasts of significant water usage reduction during the drought. The region received far above average rainfall this year, and the drought conditions are improving.
As with any company there are risks involved. The business model for AWR is very stable and reliable one. The barriers to entry into their business are enormous. I like their position.
AWR was overbought at $47! The stock has pulled back dramatically, and is now in buy range.
If you like to trade, buy this stock under $40 and you will make good money in the short term.
I bought a few times under $40.
This stock is a gem for any long term portfolio.