One more chance for the “Gary, I was offended” deal. Oh by the way, I’m also looking at Underarmour (UA) and FitBit (FIT). (July 20, 2015)
Under Armour ( NYSE:UA ), Off The Rack Global, otherwise known as OTR Global; somebody said they’re actually a big research, firm I’ve just never heard of them, downgraded Under Armour ( NYSE:UA ) last week. The stock takes a dump here, and it turns out to be a pretty good buying opportunity.
What they are doing is, Under Armour ( NYSE:UA ) now is getting into the whole fitness wrist, I don’t even know what you call it, wearable body monitor with heart rate, steps walked, and this and that and the other thing, it’s called the Grip. So that’s different than Fitbit ( NYSE:FIT ), which is why Fitbit ( NYSE:FIT ) has been under distribution today on an otherwise strong day.
I will just say this, Fitbit ( NYSE:FIT ) isn’t going away just because Under Armour ( NYSE:UA ) decides it wants to get into the wearable technology on the wrist, as opposed to the rest of the body. What this is showing is, this is a new industry, this whole wearable body monitoring, for lack of a better term, this is a new industry like solar used to be, like social media used to be, like 3D printing used to be, like cyber security used to be. All of those have had their heydays, some still are.
I’m just telling you, look at Fitbit ( NYSE:FIT ), it sold off a little bit, longer-term this is going to be fine. Under Armour ( NYSE:UA ), I doubt I’ll be getting one of those Grips because I have a Surge from Fitbit ( NYSE:FIT ), I also have a couple Jawbones, and a Polar Tech. What I need is more exercise not more monitors telling me that I need more exercise. I’m telling you right here, you look at Fitbit’s ( NYSE:FIT ) chart, this looks like some really nice consolidation. Fitbit ( NYSE:FIT ) is due to report in early August so this has a ways to go.
Under Armour ( NYSE:UA ) reports this Thursday, so that’s going to push this stock out of this box, I’m not going to tell you which way, but I will tell you this, the trend is up. My anticipation would be that the stock is going to continue to move. Short-term, we don’t know what earnings are going to be, my bet is they’re going to be higher.
So my suggestion as far as trading it, if you want to establish a long-term position, take half; buy half of what you’d like to own and then wait until after earnings and then buy the other half; either at a discount, at which time you’ll be happy that you only bought a little but to begin with, or at a premium, at which time you’ll be glad that you at least bought a little bit to begin with. I’m looking at Under Armour ( NYSE:UA ) and I think it works. I think Fitbit ( NYSE:FIT ) is also going to work.
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