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
Read : "Under Armour Special Effects" to learn more.
- 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.
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Use the below headlines from Dow Jones, Edgar Online, Flyonthewall and Knobias to see Insider Activity.
-----Tom Renna , Equities Research LLC. , tom@equitiesresearch.com ,908-477-4796
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