Saturday, March 31, 2012

" Let's make your portfolio hard as nails by adding a little Under Armour (symbol UA ) (NYSE). An investment not for those who sit on the bench on the sidelines"

Dow Jones Industrial Average 13,212 (UP) Week ending 03-30-2011

Your probably wondering why I am recommending the purchase of a stock Under Armour Inc. Cl A (Symbol UA, $94.00) that has a forward trading PE of 42?  Well how about because it has a Consensus Estimate of GAP earnings of a rise of 63.54%!  (.60 cents over .37 cents per share).  This dude has got game! 2012 earnings per share are projected at $2.33 and then rises in 2013 to a projection of $2.99 earnings per share.
The financials on this stock are very strong. UA's  Current ratio is 7 - 2 , Assets to Liabilities to speak in horse racing odds, and I thing this one will be a pace setting runner. 5 year sales growth for the company has been 28.36%. It has projected long term Earnings growth of 27.53 %. 

They also have a very healthy Return on Equity of 17.37%. I would consider this a very aggressive growth investment to fill that part of your portfolio for high growth. (my broker Vince likes this one too for this purpose. I told him I wanted to be in the game!). It will of course have a high beta to go along with that, with the price moving around rapidly. 

Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. They make really slick stuff and do really slick marketing of that stuff.  Here is their website.  .

4.68% of the company's stock is owned by the Berkshire:Focus Fund. They are currently up 28.45% on their investment. The one year total return on the stock is 28.36% and the 3 year total return is 420.2%.
"Slick stuff for Slick Willy". Maybe I could even golf decently if I donned the Under Armour wear.  Probably  not!   
    Wishing you a Happy April Fool's day and also Palm Sunday if your are a Christian in around an hour and 10 minutes if you are in the USA eastern time zone.  

Freewilly signing off

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