Under Armour (UA)

(Market call minute.)

A high multiple stock in performance sportswear. Because of the valuation, it is hard to determine an attractive entry point. There is a lot of international growth opportunities, but it tends to be more of a momentum type name. Would not buy this here. There are other names in this space that have better valuations, or are trading at a more attractive multiple.

It is a wonderful brand, growing very quickly. The move yesterday was because of an excellent earnings report. This is a momentum stock and he would not gravitate toward it.

Don’t sell before the end of the year if you have a profit. They have fantastic management. His prognosis is bullish. It is, however, expensive.

You can’t look at the multiple, but rather should look at the peg ratio, which is over 3, so you are paying a lot. When or if they start to disappoint, which they are not currently, this can cut in half in 6 months and you have to consider that. Use tight stops. It could keep going for a couple of years before going down.

Has done extremely well, but is trading at 88X trailing PE and 70X forward PE with a PEG ratio of 3.0, so it is pretty stretched in terms of valuation. He would prefer Nike (NKE-N) at this point.

An interesting company. They do make a lot of products, however it is expensive. Valuation compared to a Nike (NKE-N) is high. Trading at 71X earnings. It definitely has had a run. If you own and have done really well, it doesn’t hurt to take a profit.

Trend is obviously up. Chart shows a growth channel. There might be a little pause or corrective period in store right now, but you stay with it as long as that growth channel is intact.