UA Earnings Suck: Blame Marketing

ua-full-body-outfitUnder Armour announced their earnings last night and they were not to impressive. Plus they lowered guidance for the rest of the year. For this quarter, they beat on revenues but were down on net income "due to increased marketing expenses". I think it is so funny that they blame their earnings miss on marketing, one of the few aspects of business that the company has complete and absolute control over. This made me chuckle so I mentioned it to Seth, and he got a kick out of it too. Here are a couple things I have noticed as to why they are spending too much on marketing.

1)They are signing a ton of teams and associations and supplying them with gear. They dont seem like the most lucrative deals either. This one is a great example:
Under Armour Partners with Intercollegiate Women's Lacrosse Coaches Association, Inc.
Who sends out a press release for that!? Do you think investors care? I wonder if the teams pay anything for all the gear they get??

2)They sponsored the hell out of MTV's Real World Road World Challenge: Gauntlet III. Every reality tv loser on that show was rockn' Under Armour. Then every commercial break there was some badass Under Armour commercials. I'm sorry, but couch potatoes who have nothing better to do than watch Real World Road Rules Challenge (ya thats me) don't seem like the best target demographic for Under Armour's gear.

Keep up the good work marketing department. The more you spend, the less UA investors make and the better my short position gets. UA finished the day at $34.62 down 10.26% for the day.

Related Post:
UA Meets My Profile: Short Time



Feeling Twittchy

twitter-logoSo the newest web 2.0 company to take over my life is twitter. Basically twitter is just a text messaging platform in hyperdrive. The simplicity and openness of it makes it super attractive to developers and we are seeing lots of fun apps. Some cool apps which I have been using are: PocketTweets Twhirl, TwitterFeed & Twistori. There are a ton more but those are the ones I have played with so far.

If you are on twitter or just want to check it out, follow me at:

twitter.com/Greg_Gerber



Up On Technorati.com

I have never really gotten into www.technorati.com. In fact, for about 2 years I thought it was "Technocrati.com". Either way it seems to of come a long way and it looks like a good way to get my post noticed and increase my subscribers/readers. You can check out my Technorati profile here.



New Site Design

So as you can see I decided to redesign the site. First off, it was starting to look a bit cluttered and I think the new layout fixes that. Second I just had an urge to do some web-dev. It's been a while since I built a website and I just wanted to make sure I still remember how. For those die-hard fans out there who have trouble migrating to the new design, you can still view my site with the old design here. =)

So what do you think of the new layout? What do you like? What don't you like? Any suggestions? Bugs? Let me know in the comments.

PS. Don't forget to subscribe the the RSS Feed (top left corner).



Time To Buy GLW

I think the days of riding sideways are finally over for Corning (GLW). The stock has been trading between $20 and $26 for two years straight and it looks to be making a move. The 50 day moving average has just crossed the 200 going into what is expected to be a strong earnings report. Last time this happened it made a 20% move to $27.25 setting a 52 week high. With earnings Tuesday, I recommend buying ahead of earnings for a nice trade. Good numbers out of GLW will most likely send GLW to the 52 week high list.




Yesterday's AAPL and AMZN Earnings

Yesterday's earnings went as expected. AAPL announced their best March quarter ever destroying the estimates. They sold 2.29 million Macs, 1.7 million iPhones and 10.6 million iPods. The iPhone number was shocking considering AT&T announced activating only 700k iPhones during the quarter. That means one million iPhones were bought, unlocked and activated on other networks.

AMZN had a nice quarter as well with net sales increasing 37%. The only problem here was that AMZN's stock doubled last year and expectations were high. There is nothing they could have announced which would have sent their stock higher.

Both stocks moved as planned but I am still down on the AMZN trade. I purchased AAPL 12 days ago at $154.24 and now it is trading at $167.75 (I am up 8.75%). I sold AMZN short on the same day at $73.02 and it is now trading at $78.07 (I am down $6.9). APPL is up after it's earnings and AMZN is down after it's earnings which is exactly as I anticipated. What I hadn't anticipated was Google's monster earnings last week lifting AMZN the way it did.

At this point I am going to hold my AAPL and look for an exit on AMZN. I still think AMZN will trade lower and there is a chance I still might come out ahead on that one. I need to free up some cash though, because I have my eye on a couple stocks that I want to get into before their earnings.



Problems With Scottrader On Leopard

So I have been going back and forth with the Scottrade Customer Service people for a week now and still no solution to my problem with Scottrader. Scottrader has been acting buggy as hell, lags and bugs galore. They had me clear my cache, java cache and all the things you would think but there is still issues. It seems to stem from the fact that Leopard does not support Java 6. I guess that means it's Apples fault, but its Scottrade's problem. If they implemented a new version of Scottrader which is dependent on some part of Java 6 then they basically just screwed all of their Mac users. This is a HUGE problem, to the point where I might consider switching to another broker if not resolved soon. If anyone else is having problems with Scottrader on Leopard, or has a possible solution, comment below.



Dont Let The Daily Movements Affect Your Overall Plan

If you are not looking to make quick trades, there is a definate disadvantage of having your live stream up on your screen's every day. The twitchy daily movements of the market seem to have a much greater impact than they really do. Sometimes you need to remember to just sit back and analyze the overall trend..
EXAMPLE:

I have been short UA for some time now. I have been in the green for the majority of the trade but I started to get a little bit worried yesterday. On Thursday of last week the stock was trading at roughly $32 and Monday it hit a high of $37.44.



Now usually this would throw up some serious flags and I would be tempted to get out while I am still in the money. But luckily I am learning to relax and not let the twitchyness of the market cloud my judgment. As you can see below, this GIANT $5 MOVE was nothing but a blip on the chart of a stock spiraling out of control.




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