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Current DateTime: 01:47:38 24 Nov 2009
LinksList Documentid: 33424199

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Stock Jocks Punish Under Armour's Mathletes
Published: Wednesday, 28 Oct 2009 | 8:47 PM ET
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By: Tom Brennan
Web Editor, Mad Money

Under Armour on Tuesday tried a bit of a Jedi mind trick on the market, and now the stock is paying for it. UA has lost a total of 25% over the past two days.

Get this: The company boosted its full-year guidance to 5 cents a share. The problem? It’s third-quarter beat was came in at 8 cents. Wouldn’t that mean Under Armour [UA  Loading...      ()   ] should come up 3 cents short in Q4?

And that’s not the only math kung fu the company tried to pull on investors. Under Armour also “raised” its full-year revenue outlook to between $830 million and $835 million from $810 million. But the first three quarters totaled $635 million, leaving just $200 million for the fourth quarter, which is “horrible” for the holidays, Cramer said.

At first, Wall Street and the media were fooled. Early in the morning The Associated Press ran a story with the headline, “Under Armour Raises Outlook on Strong Sales.” A few hours later, though, the attitude had changed: “Under Armour Falls as Investors Worry About 4Q.”  The gig, as they say, was up.

Other companies take note: Trying to hoodwink investors will backfire on you.

Investors realized they were taken, Cramer said, “and they’re making [Under Armour] pay an extra price for its tricks.”

Call Cramer: 1-800-743-CNBC

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Current DateTime: 01:19:41 24 Nov 2009
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Current DateTime: 01:09:39 24 Nov 2009
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Current DateTime: 01:04:16 24 Nov 2009
LinksList Documentid: 29779198
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