Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2018-10-17
Length: 13 pages
Data source: Published sources
Abstract
An analyst at Vaux Gibson Inc, a fund that managed a portfolio of North American equities, was tasked with reviewing the fund's holdings of Under Armour Inc (Under Armour) and providing recommendations for the fund's prospective investment strategy with the company. Under Armour had experienced significant revenues and bottom-line growth over the past three years, but this growth slowed significantly in 2017 and the company reported a net loss, resulting in the significant depreciation of its stock price. The analyst wondered if it was time to exit the investment, providing investors with an above-market return, or if there was still room for Under Armour to recover and grow.
About
Abstract
An analyst at Vaux Gibson Inc, a fund that managed a portfolio of North American equities, was tasked with reviewing the fund's holdings of Under Armour Inc (Under Armour) and providing recommendations for the fund's prospective investment strategy with the company. Under Armour had experienced significant revenues and bottom-line growth over the past three years, but this growth slowed significantly in 2017 and the company reported a net loss, resulting in the significant depreciation of its stock price. The analyst wondered if it was time to exit the investment, providing investors with an above-market return, or if there was still room for Under Armour to recover and grow.