Saturday, June 9, 2018

Allergan: Unwelcome Guests?

Appaloosa and Senator sent letter to company requesting corporate changes that are rearview mirror leaning.
The activists are right that a more focused and nimble company is needed to achieve better results.
The company already has a plan that needs focus and any disruption from activists could be a negative on the existing plan for higher EPS targets in 2019/2020.
Allergan (AGN) is down 50% from all-time highs back in 2015 so understandably activists are agitating for changes. The time to make those moves was a few years back while now the biopharma needs to execute on the initiatives already set forward by the CEO.
Read the full article on Seeking Alpha. 

Disclosure: Long AGN. Please review the disclaimer page for more details. 


Friday, June 8, 2018

Under Armour: Rock Solid

Under Armour has quickly learned how to market footwear to generate buzz.
The footwear segment is where the athletic apparel company has the most growth potential.
The stock remains cheap at 2x forward sales estimates.
Under Armour (UAUAA) made a huge mistake while trying to grow too fast. The move into discount stores hurt the brand value and the recent release of shoes for "The Rock" shows the company has finally regained a marketing edge that will reward shareholders now and in the future.
Read the full article on Seeking Alpha. 

Disclosure: Long UA. Please review the disclaimer page for more details.