Under Armour

I've been watching this company for a while. They make athletic clothing and are becoming very popular especially with professional sports players.

They went public November '05.
They currently generate ~$350M in sales and $22M in earnings.
They are forecasted to grow earnings ~50% over the next 12 months.

I think this company is a solid performer and will definitely grow.
I don't suggest them as an investment today because I think they are over priced: P/E is 73
Earnings growth is 50% (with room for upside).

Any upside is already priced into the stock. The stock is $36 today (52 week high was $43). I'd get interested if it hits $20.

Moreover, I am not seeing any margin improvements as the sales increase. At some point, we would expect to see efficiencies of scale.

Pass for now.