Tuesday, October 23, 2007

Paperstand (UA, CWTR)

The WSJ's "Heard on the Street" column discusses Under Armour (UA) that is scheduled to post 3Q earnings next week. Revenue growth could falter, and early indications are that the 4Q isn't off to a good start. Competition also is heating up as Nike and Adidas look to grab share in the mkt for compression undergarments. In addition, the prospect of a slowing economy could hurt sales of Under Armour's tight, stretchy gear. "Back-to-school was definitely disappointing for active apparel and footwear, but the rate of decline was more marked here for Under Armour," says Matt Powell, of SportScanInfo. "After 4 or 5 ys of huge growth, it's very hard to maintain big percentage increases yoy." But that is the challenge facing Under Armour. The co's shares trade at more than 40x projected earnings for '08, making it a battleground stock for growth investors and short-sellers.

Barron's Online highlights fund manager top holdings, including EQIX, SCHW, RIMM, GOOG, AAPL, CMCSK, CME, MNST and ETFC.

According to the "Inside Scoop" section, Coldwater Creek (CWTR) insiders seemed to have turned bullish, scooping up 43K shares just days after disturbing 3Q guidance sent shares tumbling. On Wed, President and COO Dan Greisemer purchased 30K shares for $252K. He now directly owns 86K shares. The same day, director Michael Potter bought 13K shares for $109K. "This is the mgmt and the board trying to express some confidence business going forward," says Ben Silverman, of InsiderScore.com. "They are sending the message that the issues impacting the co are near- to mid-term issues, and that the long-term health of the business is intact." However, although he sees it as a bullish sign, Silverman notes that the purchases are modest. "Considering insiders have not been active buyers in the past, certainly this would be the time for them to buy if they were going to do so," he says.

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