Wednesday, August 15, 2012

Follow Insiders At Under Armour and SELL

originally published at Equities Research

August 14,2012
Under Armour
(NYSE: UA) traded less than 1 million shares for the second consecutive day and closed yesterday @ $56.42. Since the company reported 2nd quarter financials on July 24th the stock is 16.62% higher. Increasing its market capitalization by nearly $900 million to $5.89 Billion. (Under Armour traded at an all time high on August 7th @ $58.48.)

Under Armour is on my radar as a prime Short
  • The company reported an increase in sales of $78 million while only adding a mere $427,000 in net income
  • For 6 months 2012 the company increased sales by $149 million and only increased comprehensive net income by less than $900,000.
  • The company has generated NEGATIVE FREE CASH FLOW for its trailing twelve months
  • Operational Cash Flow for the prior 3 years (2009,2010,2011) has declined from $119 million to $50 million to $15million,respectively.
  • Accounts Payable increased by $50 million vs. 1st Quarter
  • Accrued Expenses increased by $19 million vs. 1st Quarter
  • Total Liabilities (all current) increased by $69 million vs. the 1st Quarter
  • Stockholders Equity increased by only $15 million vs. the 1st Quarter

Read : "Under Armour Special Effects" to learn more.
  • The dilemma that Under Armour faces is that it only has $143 million in cash. That is not enough to pay off its Accounts Payable of $146 million and its current portion due of $42 million of its long term debt that was moved to its Current Liabilities section of its Balance Sheet in its first quarter ended March 31, 2012.

Below is a table from Yahoo finance showing daily volume with stock prices since company reported 2nd quarter financials on July 24th.

Prices

DateOpenHighLowCloseVolumeAdj Close*
Aug 14, 201257.1857.2356.2456.42888,00056.42
Aug 13, 201256.7257.0055.8256.88741,60056.88
Aug 10, 201256.9657.6056.2156.761,190,60056.76
Aug 9, 201256.8457.8056.7257.351,008,10057.35
Aug 8, 201256.4057.2256.2756.691,124,40056.69
Aug 7, 201257.9758.4856.5756.752,105,20056.75
Aug 6, 201256.1057.7355.9257.672,311,80057.67
Aug 3, 201255.1156.4054.9956.111,683,90056.11
Aug 2, 201253.3954.7953.0254.111,432,80054.11
Aug 1, 201254.9455.1053.5053.501,634,40053.50
Jul 31, 201254.9955.2053.9454.441,551,80054.44
Jul 30, 201255.1855.9054.7555.411,478,20055.41
Jul 27, 201255.4855.9954.7455.142,080,60055.14
Jul 26, 201254.8855.9554.7455.312,366,70055.31
Jul 25, 201253.0254.6152.8353.923,349,60053.92
Jul 24, 201251.7055.0051.7052.7910,197,10052.79
Jul 23, 201248.5949.2947.3348.382,906,90048.38



Use the below headlines from Dow Jones, Edgar Online, Flyonthewall and Knobias to see Insider Activity.
08/14/2012 22:54 ETDJ CFO DICKERSON Registers 5,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/14/2012 17:11 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
08/14/2012 17:11 ETDJ CFO DICKERSON Sells 5,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/14/2012 16:19 ETUA: Filed New Form 8-K, Material Event Disclosure - Edgar
08/10/2012 22:40 ETDJ Holder CUPID FOUNDATION Registers 30,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/10/2012 22:39 ETDJ Holder JSP 2009 GRAT Registers 38,964 Of UNDER ARMOUR INC >UA - Dow Jones
08/10/2012 22:38 ETDJ VP PLANK Registers 125,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/10/2012 22:38 ETDJ Holder JSDM FAMILY LLC Registers 25,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/10/2012 22:37 ETDJ Chmn PLANK Registers 240,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/10/2012 22:35 ETDJ Holder JS PLANK & DM DICARLO FOUNDATION Registers 12,500 Of UNDER ARMOUR >UA - Dow Jones
08/10/2012 22:35 ETDJ Holder KD PLANK LLC Registers 15,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/09/2012 10:34 ETDJ MARKET TALK: Under Armour's Footwear Showing Strong Stride - Dow Jones
08/08/2012 22:33 ETDJ Holder KD PLANK II LLC Registers 15,000 Of UNDER ARMOUR INC >UA - Dow Jones
08/07/2012 18:38 ETDJ VP PLANK Sells 83,082 Of UNDER ARMOUR INC >UA - Dow Jones
08/07/2012 18:36 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
08/06/2012 06:03 ETUA: Filed New Form 10-Q, Quarterly Report - Edgar
08/02/2012 20:22 ETDJ Chmn PLANK Sells 38,178 Of UNDER ARMOUR INC >UA - Dow Jones
08/02/2012 20:20 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
08/02/2012 19:38 ETDJ VP PLANK Sells 105,882 Of UNDER ARMOUR INC >UA - Dow Jones
08/02/2012 19:36 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
08/02/2012 19:34 ETDJ Chmn PLANK Sells 231,822 Of UNDER ARMOUR INC >UA - Dow Jones
08/02/2012 19:31 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
08/02/2012 12:25 ETBofA/Merrill's global retail team holds an analyst/industry conference call - theflyonthewall.com
08/02/2012 05:55 ETBofA/Merrill's global retail team holds an analyst/industry conference call - theflyonthewall.com
07/31/2012 22:52 ETDJ VP MIRCHIN Registers 15,000 Of UNDER ARMOUR INC >UA - Dow Jones
07/31/2012 15:45 ET*DJ Under Armour (UA) Mkt On Close Buy Imbalance: Shrs 88800 - Dow Jones
07/31/2012 09:48 ETBofA/Merrill's global retail team holds an analyst/industry conference call - theflyonthewall.com
07/30/2012 15:21 ETUnder Armour's Special Effects - Knobias
07/27/2012 17:11 ETDJ VP MIRCHIN Sells 15,000 Of UNDER ARMOUR INC >UA - Dow Jones
07/27/2012 17:11 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
07/27/2012 17:06 ETUA: New Form 4 Filed, Change in Beneficial Ownership - Edgar
07/27/2012 17:06 ETDJ Dir COLTHARP Sells 15,000 Of UNDER ARMOUR INC >UA - Dow Jones
07/25/2012 08:01 ETUnder Armour's 2H athletic outlook looks solid, says UBS - theflyonthewall.com
07/24/2012 18:13 ETDJ US HOT STOCKS: MetroPCS, Ryder, Sanmina-SCI, Under Armour -2- - Dow Jones
07/24/2012 16:14 ETStocks Ende Lower But Cut Losses Late After Fed Says Action May Be Coming Soon - Knobias
07/24/2012 16:00 ETKnobias Sector Commentary - Knobias
07/24/2012 15:54 ETUnder Armour Uses Special Effects to Puff UP its Financial Performance and Share Price - Knobias


-----Tom Renna , Equities Research LLC. , tom@equitiesresearch.com ,908-477-4796

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