Warren Buffett Of Canada Bets Big On Under Armour: Is UA Stock Really Turning The Corner?

Group 1 - Prem Watsa's significant increase in Under Armour Inc stake by over 560% indicates a strong belief in the company's undervaluation and potential for recovery [2][3] - Watsa's investment strategy focuses on misunderstood companies with low expectations, suggesting that he views Under Armour as a turnaround opportunity rather than a short-term trade [3][4] - Under Armour has been restructuring by cutting excess inventory and refocusing on performance apparel, which may present a value investment opportunity as operational risks stabilize [4] Group 2 - Despite Watsa's investment, Under Armour still faces challenges such as intense competition, uneven consumer demand, and margin pressures, indicating that the turnaround is not yet complete [5] - The accumulation of shares by a notable investor like Watsa suggests a shift in the risk-reward profile for Under Armour, prompting investors to consider the potential for long-term recovery [6]