Under Armour (NYSE: UA) closed at $33.75 Tuesday.

UA is hosting an investor meeting on May 29.

UA June call option implied volatility is at 53, puts are at 64; above its 26-week average of 52 according to Track Data, suggesting larger price movement. UA puts volatility is higher than call volatility because UA is difficult to borrow.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Under Armour June volatility up into investor meeting originally appeared on BloggingStocks on Wed, 28 May 2008 08:30:00 EST. Please see our terms for use of feeds.

Though Under Armour (NYSE: UA) has gained more than 38% over the past year with eye-popping growth, investors should avoid the stock for now.

Under Armor's stock price may be poised to fall because of the company's patent liability and unmanageable product diversification. The company's 66 earnings multiple is three-times higher than its competition. Although the company is certainly not "average" with its growth statistics and very profitable businesses, the valuation is still ridiculous. Analysts expect the company's growth to slow to only 24% per year for the next five years, down from 44% per year for the last five years. Analysts, though, have failed to take into account increasing amounts of price cuts, which will also hurt 2008 earnings.

While Under Armour can claim nearly 75% market share in its primary market, this figure is likely going to be in steady decline for the next couple years because the company's products aren't protected by patents. As a result, competitors like Nike (NYSE: NKE) and Adidas have (and will continue to) hurt Under Armour's market position and pricing power. For most people (excluding the very wealthy) lowest price wins, especially when shopping for something as fungible as a performance t-shirt. This is going to force Under Armour to cut its prices and its margins and its status as a premium brand

Continue reading Under Armour: Overvalued and vulnerable

Under Armour: Overvalued and vulnerable originally appeared on BloggingStocks on Mon, 16 Jul 2007 17:40:00 EST. Please see our terms for use of feeds.

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Under Armour to open first retail location soon originally appeared on BloggingStocks on Fri, 25 May 2007 10:15:00 EST. Please see our terms for use of feeds.

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Analyst upgrades 5-08-07: AA, LVS, MRVL, SLE and UA originally appeared on BloggingStocks on Tue, 08 May 2007 10:42:00 EST. Please see our terms for use of feeds.

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Analyst initiations 4-25-07: CROX, SUSQ and UA initiated today originally appeared on BloggingStocks on Wed, 25 Apr 2007 12:00:00 EST. Please see our terms for use of feeds.

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Analyst upgrades 1-23-07: Under Armor stands tall originally appeared on BloggingStocks on Tue, 23 Jan 2007 11:23:00 EST. Please see our terms for use of feeds.