It strikes me how investment trends ripple through the market. In last Saturday’s Office Hours, IOI Member Kyle R. asked about sportswear maker Under Armour. Since March 2016, Under Armour lists several classes of stocks each with different voting rights; Kyle wondered if there might be an arbitrage opportunity since there is a difference between the two share class’s prices. Here are two share classes of Under Armour, tickers UA and UAA.
Then, a few days later, Robert R., an investment fund portfolio manager in New York, who uses the IOI Training Courses to train new analysts, asked me if I could look at Under Armour as part of a case study for one of the analysts going through the IOI Training Courses.
I haven’t done work on Under Armour recently, but nearly three years ago, as YCharts’ Director of Research, I wrote a detailed “Focus Report” on the company. The Focus Reports are set up in a very similar way to our IOI ChartBooks in that I analyze each of the valuation drivers in turn.
A note about this report: my role at YCharts was not to advise people on investing, but rather draft reports that would highlight the depth and quality of YCharts data and model how it might be used in financial analysis. The stock was rated by the YCharts “Y-Value” algorithm as being overvalued, but I thought that the company actually had a good chance of gaining market share using its “Island Hopping” strategy.
This Focus Report does not contain a valuation, but you can get some good background information about the company and its business strategy in the overview section and in the investment driver pages.
Expect to see more about Under Armour in the days to come!