UAA Privatization Talk: Under Armour Turnaround Play

Speculation regarding Kevin Plank taking Under Armour (UAA) private presents a significant, albeit speculative, investment opportunity. Companies that go private often do so at a premium to their current market valuation, offering an upside for existing shareholders. Despite UAA's dismal performance (down 40% YTD, 90% over 10 years), the founder and CEO's focus on 'rebuilding the brand' and a potential privatization move indicates a belief in long-term value that the public market may be overlooking. This could be a deep value play or a bet on a privatization event, offering a potential floor to the stock price and a catalyst for a premium. Investors considering UAA should be aware of the high risks associated with privatization speculation and the underlying business turnaround.