Lot of bulls for Under Armour on ProofTrader, so I'm going to make this brief.  Today UA fell over 10% after a strong 1Q earnings report.  Earnings per share were .23, 64% above last year's 1Q and .01 above even the highest analyst estimate.  How can this selloff be explained?

Because earnings are released outside of trading hours, the first reaction, made by a few big players probably, is what determines the move.  So it's some kind of weird snowball-rolling-down-a-hill or like when cows spontaneously combust, a very fast iterative effect that exaggerates noise.

By the time the market opens that direction, down, has already been set.  So people sell.  But their loss can be our gain.  I predict the stock will have no problem getting back to $80 in the next few months.   If I'm wrong, at least you'll be able to call me out on it.

The earnings press release here:

http://www.prnewswire.com/news-releases/under-armour-reports-first-quarter-...