Cramer Thinks Under Armour May Be the Next Nike

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By Douglas A. McIntyre Published
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On tonight’s MAD MONEY on CNBC, Cramer was on a back-to-school tour at University of Virginia with a couple of stock picks.  He thinks the two most exciting stocks in this market are Under Armour (UA-NYSE) and Crocs (CROX-NASDAQ).  UA has already started to bounce a bit, some takeover rumors, after its big drop last week after earnings.  CROX more than doubled since his first call and he has been saying take ‘some’ of it off the table and keep some.

Cramer said he thinks one of these could be the next Nike (NKE).  Both are expensive and at the point that they either have to be the next NKE or they have to be one-tick ponies that crash.   UA trades at 47-times forward earnings and they have branched out into cleats and other areas that competes against Nike.  He doesn’t know how global it can be but it has already started to and the brand is catching.  He thinks it deserves to because of its brand.  The revenue guidance is up 30% to 35% for 2007 and Cramer thinks the owners won’t sell to puma or another yet.  Cramer thinks this one is the next Nike, or at least the Next Reebok that got acquired.  UA traded up 1.5% to $48.68 after Cramer discussed this one.

Jon C. Ogg
February 7, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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