RawGreed Requests, UARM, Under Armour, Inc.

Posted on November 29, 2005 , filed under Stocks | Print This Post

Leo L. writes,

I was wondering what are your thoughts on Under Armour’s IPO (Nasdaq:UARM)?

UARM, Under Armour Inc. sells athletic apparel and merchandise to a specific audience of young athletes. I prefer investing in companies that have a broader audience such as NKE, Nike Inc. and a more established brand name. Smaller companies such as Under Armour that cater to a specific audience, run a greater risk of success due to a momentary fashion trend. I have seen athletic wear companies come and go quickly. Instead of UARM, I would prefer to invest in OO, Oakley in the short term, 3-6 months. OO and UARM have a similar market cap, though Oakley is a far more established brand. Oakley is a sporting goods company that sells eyewear, clothing and accessories. In the long term I’m not bullish on any athletic apparel or sporting goods company. Earnings fluctuate wildly and rather quickly over customer trends.

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