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Vonage Shorts Out, Beneath Armour Has Lofty Ambitions


Below Armour, Inc. (UAI) debuted on November 18, 2005 at $31.  [http://www.skinsbaselayers.co.uk/ skins base layer] . The maker of branded functionality clothing is expanding its brand recognition by way of the use of hip brand promotion that is attempting to wrestle away interest from the conventional buyers of Nike (NKE).

Below Armour has targeted the youth and athletic industry where it competing with the established and powerful Nike brand. Below Armour has a projected 5-year annual earnings development of 22.50% versus 14% for Nike. But on the valuation side, Under Armour is discounting in considerable premium development over that of Nike. Beneath Armour is trading at 46.19x its FY07 and a PEG of 2.75 versus 14.27x and a PEG of 1.06 for Nike. Clearly, Beneath Armour will require to carry out to its lofty expectations going forward otherwise, the stock will sell off. Cakes Brides of North Texas [http://www.skinsbaselayers.co.uk/ base layers for kids] . Nike is a superior value play.

Vonage Holdings Corp. (NYSE/VG) debuted on Wednesday at $17, the mid-point of its estimated IPO pricing range of $16-$18. The provider of Voice more than Internet Protocol (VoIP) is an early entrant into the quickly growing area of VoIP and presently has about 1.six million subscribers but the company has yet to turn a profit. VoIP uses a broadband connection to make phone calls.

High marketing expenses to acquire consumers have hindered margins. Vonage is the existing leader due to its early entry into the VoIP business but I see the company facing a hard uphill climb as intense competitors surfaces from key cable businesses and the Skype service from eBay (EBAY).

The reality is Vonage has to devote extraordinary money on acquiring clients whereas for cable firms and eBay, there is already a significant customer base to market to.  [http://www.skinsbaselayers.co.uk/?cPath=15 base layers for kids] . Vonage will soon recognize this.

Hedge fund manager and the host of the hugely common Mad Cash show on CNBC stated Vonage is a piece of junk, which I have to concur with. And with Vonage presently trading down at $13, the market could also view Vonage as more than hype and not adequate substance.