Some stocks just don't get much respect.
Take Under Armour (UAA) . When Under Armour last reported, it was widely hailed as the bottom. There was ample evidence that the stock had become overly hated, that there were way too many bears. There were more sells than buys.
Well, it caught some upgrades, but in the end, it didn't matter. The stock's right back to where it was.
Then I figured, when Stephen Curry started to dominate again maybe things would pick up. I figured it would stir some buyers.
Finally, last week Kohl's (KSS) reported a half-decent quarter and praised Under Armour as a major reason why sales came back during the quarter. It was the most bullish testimonial for UAA imaginable, and I thought for sure it would have an impact.
Still, it makes you wonder if something else is out there. Now we will hear Footlocker (FL) Friday and perhaps the story there is a slowdown, although I doubt it.
Perhaps this underperformance is just a testament to how hard it is for anything but tech to come bounce back to life. This one just sticks out like sore thumb. I know it is still expensive. My best theory about why it might not be rallying is that Macy's (M) and JC Penney (JCP) have to close a ton of stores, which means a lot of UAA merchandise will be floating around in the system.
Maybe it will take a concerted effort by Action Alerts PLUS charity portfolio holding TJ Maxx (TJX) -- where I think a lot of their wares will end up -- to clean out the inventories before this thing can stage a move higher.
Cocktails & Cramer
Join Jim Cramer on May 23 for an exclusive party at Bar San Miguel, his Brooklyn tavern.
You'll get to watch a screening of Mad Money, after which Jim will arrive fresh off of the CNBC set to mingle, pose for photos and answer your investing questions.
Participants will enjoy dinner, drinks, an autographed copy of Jim's book Get Rich Carefully and a free one-year membership to Action Alerts PLUS, Cramer's VIP club for investors. (Current AAP members will receive one extra year of membership for free.)
When: Tuesday, May 23, 6 p.m.-9 p.m. EDT
Where: Bar San Miguel, 307 Smith St., Brooklyn, N.Y.
Cost: $375 per person
Space is very limited, so click here to reserve your ticket to this exclusive event today.