Under Armour: Curry Wins! Sell The News

6/12/16

Stephen Curry and the Golden State Warriors won game four of the NBA finals on Friday night, and with that the inevitable grind to the championship. Curry's team was heavily favored to win it all, and we expected the series to last six games at best. We may only see five, as the Warriors, by all probabilities, will close out the series at home on Monday night. The NBA finals is not about sports, however, it's about money. Under Armour (NYSE:UA) benefited greatly from this championship run with the Curry shoe seeing record sales, and the company is starting to take a bite from the sneaker king, Nike (NYSE:NKE). The Curry versus LeBron competition will soon be settled on the court, but off the court the battle for market share continues. A championship for Curry, and the shoe-hype that follows, look to set up as a classic sell the news event for UA.

Weakness in retail stands out as one of the bigger themes this quarter, and UA was no exception. The company reported tremendous earnings on April 21st and the stock popped to the $45 range before precipitously dropping the following week.

READ FULL ARTICLE HERE