Adrian Gomez Investments

As I've mentioned in previous articles I believe the Company will go lower in the next few months. I have backed my words with some of my money on PUT options in the mid-single digits expiring in July 2018 and January 2019 as you can see on the picture of my position. I've explained how the company is expecting to be more levered in the next coming months and how their financials are deteriorating as presented in their most recent 10-K filing. I have also given you my personal opinion on why I believe the company will experience lower margins during this fiscal year and an my overall thesis on why I think there's more trouble ahead for the company. However, I am only human and my fears get to me. Market sentiment is on the rise, companies have been beating expectations and I can't do but wonder if my research will hold true. I still believe that the company still has to clear some hurdles before a turnaround is in place. Interest expense is a clear exampl...

The first quarter for 2018 is gone and an earnings date has been announced for UA 's on May 1. I have been reading their latest 10-K filing and trying to find a clue on where the Company is headed. My findings are nowhere near pleasant but I assure you I've given this my best case scenario on everything and even then the numbers don't look good. Let me start with " Net Revenue " , the Company has been showing signs of deceleration in that area. It had been expanding at an average rate of 21.2 % annually over the last 4 years but with the slowest of them being last year at only 3.2%. Being generous, I will give this area an estimated 10% increase to an expected $1,229M when compared to same quarter last year of $1.12B . I said I am being generous because not only the company has shown signs of deceleration when it comes to Net Revenue but it has actually decreased in the sales here in North America where it lost 5.1% during 2017 (the equivalent to al...

This past weekend I was able to experience first hand what is going on at Under Armour’s stores. I must mention that the store I visited was not an outlet store but a regular one inside a big mall. I happened to be in the Grapevine area in Texas where the Gaylord Texan Resort is located. My thirteen year old daughter had a competition and I decided to take her. So I was naturally able to scout the area in search for clues on how the company is doing. I started by visiting Dick’s Sporting Goods and to my surprise the store was somewhat empty (meaning no customer traffic) and you couldn’t find many discounts around. I gave my wife the opportunity to look for one item that she likes (she takes yoga classes so I knew she was going to look for some pants or tops), after looking around she settled on some yoga pants but not from Under Armour, it was Nike’s and paid full retail price on them ($63.99). I, on the other hand, got myself an Under Armour cap for which I also paid full retail (...