Under Armour
Over two years ago, I suggested it was a good time for Under Armour(NYSE:UA) (NYSE:UA.C) to buy Lululemon (NASDAQ:LULU).
At the time my case was based on the fact that Under Armour needed a better play for athletic women, which Lululemon had, and a direct to consumer business model, which Lululemon had through its own stores.
Also, at that time Lululemon was vulnerable. It was dealing with a scandal involving clothing quality that eventually cost founder Chip Wilson his job. His successor, Laurent Potdevin, got the company headed back in the right direction but it failed to find a follow-on story quickly enough to keep the stock from being "taken out and shot" last year.
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