SPECIAL ALERT: Under Armour Inc (UAA) Shares Stopped Out after Back-to-Back Earnings Misses
Earlier this morning, on the back of yet another disappointing earnings report and weaker than expected guidance we were stopped out of Under Armour (UAA) shares. UAA will now be an even longer "show me " story that faces a revived Nike (NKE) and a quasi re-birth underway at Adidas (AIDDY). In the past, we have sometimes jumped back into a position if see sufficient upside (AT&T being an example), but in the case of UAA, we are throwing in the towel and removing the shares from the Tematica Select List as well.
On top of UAA's disappointing back to back quarterly results and guidance that out this morning, CFO Chip Molloy is leaving the company after just one year in the position. In our view, this adds to the company's credibility issues and likely extends its time in the penalty box. With more fruitful waters around, we would rather reel in a company that is better positioned to capitalize on our thematic tailwinds.
We'll be back tomorrow with this week's full issue of Tematica Investing. In the meantime, be sure to check out some of the new posts on TematicaResearch.com: