Unlike coupon, Under Armour was not stumble

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Unlike Groupon, Under Armour was not stumble

Under Armour went public in late 2005 and two months later analysts already were saying the stock was looking pretty foamy. Here's a story from The Sun in January 2006:Wall Street analysts recently warned that the price of the stock leaves little room for future growth. Under Armour was not stumble

The Goldman Sachs Group Inc. this month sent out what amounted to a warning message when it initiated stock coverage of the company at a "neutral" rating, not a "buy" recommendation. That was all the more striking because Goldman was one of the underwriters for Under Armour's initial public offering.

Under Armour, however, had a rock-solid, cool brand, profits and a terrific management team. Its high price relative to earnings has been justified so far, although at a PE 46 it's STILL looking foamy. The Bloomberg machine tells us that those who bought into the UA IPO in 2005 have earned a 400 percent total return. Somehow I don't think some of the companies pursuing IPOs this year will fare as well. read more

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