I’ve touted Under Armour time and again since the big gap down on it’s last earnings report.  Given the lack of price appreciation, I can feel the frustration starting to build within myself.  There’s an old saying: if they don’t scare you out, they wear you out.

Is that all that is going on here?  I don’t know.  However, it feels like that may just be it.

Today Piper Jaffray is out with a report that is damning to Under Armour.  Here’s the major snippet:

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While this is awful news, we have to remember the market already knows this.  The stock is down 65% from all time highs in 2015.  A lot of bad news is priced in.

While we’ve had a bullish momentum divergence, the stock hasn’t reacted.  The signal hasn’t been invalidated either, thus it still gets the benefit of the doubt.  It’s tricky though.

Longs have to have a plan into earnings on 4/27.  I could share plenty of potential answers as to how this will play out, but we just won’t know until it happens.

That’s the thing about trading and investing.  You have to be prepared ahead of time for any scenario, not just the most rosy outcome (if you’re bullish) OR negative outcome (if you’re bearish).

Trade ’em Well

Link:  Piper Report Notes