Started By
Message

Under Armour took a hit the last day or two...feel free to buy

Posted on 10/23/15 at 9:43 am
Posted by barry
Location, Location, Location
Member since Aug 2006
50344 posts
Posted on 10/23/15 at 9:43 am
My quarterly UA pimp thread

UA crushed another quarter...again. and they are down over 10% at 90 now. I recommend getting in now if you've been thinking about it. I'm in it for the long haul but I believe it will be back at 100 in no time. I've seen this stock get killed after posting banging earnings all the time and it inevitably rebounds.

If you bring up their P/E ratio I will ignore you.
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 10/23/15 at 9:55 am to
I've had UA for six months and it's been a winner for me. They made their earnings by 0.01 and they got killed yesterday and today's looking the same.

My thoughts are that in order to justify their P/E, they need to be beating earnings by more than a penny.

I'm in for the long haul as well because I think that they can rival Nike in the years to come. This dip is nothing more than a buying opportunity for me.
Posted by barry
Location, Location, Location
Member since Aug 2006
50344 posts
Posted on 10/23/15 at 9:59 am to
I got in during the pullback in the spring of 2014 at a hair under 50 thanks to a marketing project I did on UA and after doing research and looking at their financials I bought in.
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 10/23/15 at 10:02 am to
If you got in at $50 then your doing much better than me

I'm in at a hair under $83
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80774 posts
Posted on 10/23/15 at 11:09 am to
Sub 20ish P/E ratio is one of my rules for long term holding. In addition, I need a stock with history of dividend increases. I'll pass
This post was edited on 10/23/15 at 11:11 am
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 10/23/15 at 11:43 am to
quote:

Sub 20ish P/E ratio is one of my rules for long term holding. In addition, I need a stock with history of dividend increases. I'll pass


Does company growth not factor into your long term plans? I would think any company that could grow their market share as much as UA can would be an attractive long term hold.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80774 posts
Posted on 10/23/15 at 11:44 am to
That is less important. There are plenty of growth companies with lower PE and dividend history to avoid a 98 PE stock with no dividends.

I'm a big supporter of the dividend reinvesting strategy
Posted by DoubleDown
New Orleans, Louisiana
Member since Oct 2008
12869 posts
Posted on 10/23/15 at 11:51 am to
Thanks, I did the same thing about 2 years ago with Microsoft and then they dropped Windows 10, Surface Pro 4 and Surface Books and my bank account is thanking me.

Kind of a fun game, when it works in our favor.
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 10/23/15 at 12:23 pm to
Can you give some examples of growth companies that pay regular, increasing dividends?

It's just seems that taking cash out of a growth company would be counterintuitive.
Posted by Big Saint
Houston
Member since May 2009
1453 posts
Posted on 10/23/15 at 12:43 pm to
quote:

Can you give some examples of growth companies that pay regular, increasing dividends?


Gilead
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 10/23/15 at 12:55 pm to
Two dividend payments of the same amount is considered regular and increasing?
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11100 posts
Posted on 10/23/15 at 1:23 pm to
quote:

They made their earnings by 0.01 and they got killed yesterday and today's looking the same.


Blue light special IMO
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11100 posts
Posted on 10/23/15 at 1:26 pm to
Not true but this is the best deal in the S&P. look at the valuation. look at their pipeline.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80774 posts
Posted on 10/23/15 at 1:28 pm to
GILD starting a dividend is very promising. They are very high on my list. AAPL is also a nice option. Visa is a great option for growth as well. Then there are the oil stocks right now that should see serious price growth from now through the next 5 years. I'll very happily lock in a 4% XOM divident or 7% RDS dividend while oil prices are at/near the bottom.

I don't like the idea of zero dividends for a long term investor. Let's use UA for example...in a recession, growth stocks (as all stocks) are hammered. Yet with these "growth" stocks, you are making nothing while your stock value has plunged. UA went from $16 to $3 during the 08 recession. It took them 4 years for owners to get back to even. On the contrary, stocks with dividends still earned you money during those next 4 years. If you reinvested those dividends, you reinvested at historic lows which amplified the gains as the prices started to rise again.
This post was edited on 10/23/15 at 1:31 pm
Posted by Big Saint
Houston
Member since May 2009
1453 posts
Posted on 10/23/15 at 2:13 pm to
quote:

Two dividend payments of the same amount is considered regular and increasing?


Well they literally just started paying a dividend and still grow like crazy. It's a damn good long term option. You want dividend growth like CVX then you're going to get much lower growth rates obviously. Less risk less reward.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 10/23/15 at 3:53 pm to
quote:

That is less important. There are plenty of growth companies with lower PE and dividend history to avoid a 98 PE stock with no dividends.


Companies with historical dividend increases are not real growth companies. By paying a dividend, it is a tacit acknowledgment that you would have a better return having that money now than if the company were to reinvest in itself.


ETA: I got nothing about dividend companies but the huge surge in capital appreciation for dividend stocks probably has a lot more to do with low yields in corporate and sovereign bonds. I would not consider any historical dividend stock to be a "growth stock"
This post was edited on 10/23/15 at 3:55 pm
Posted by barry
Location, Location, Location
Member since Aug 2006
50344 posts
Posted on 10/23/15 at 9:58 pm to
quote:

UA went from $16 to $3 during the 08 recession. It took them 4 years for owners to get back to even.


Why would you not buy on the way down and if its a long term stock for you? Even if you didnt, in 7 years you 6x your money at $16. Find me a "dividend growth" stock that did that?
This post was edited on 10/23/15 at 10:00 pm
Posted by Lou Pai
Member since Dec 2014
28117 posts
Posted on 10/23/15 at 11:29 pm to
Can you give a brief thesis on what you like about em? Also, why did they get smoked this week?
Posted by GaryMyMan
Shreveport
Member since May 2007
13498 posts
Posted on 10/24/15 at 7:30 am to
quote:

why did they get smoked this week?

One reason was that Texas signed a new 10 year deal with Nike. It was rumored they would go with UA.
Posted by barry
Location, Location, Location
Member since Aug 2006
50344 posts
Posted on 10/24/15 at 8:27 am to
No. They didn't lose 2.5 billion in market cap because they didn't sign Texas.
first pageprev pagePage 1 of 2Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram