Cramer's 'Mad Money' Recap: No Piercing Under Armour

Click here for an archive of Cramer's "Mad Money" recaps.

---

Sometimes going head-to-head with analysts can be lucrative, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer still likes Under Armour (UA - Cramer's Take - Stockpickr) after UBS "unbelievably" downgraded the stock today, lowering its estimates from $72 to $68 a share.

Cramer believes Under Armour CEO Kevin Plank knows more than UBS, and Plank didn't exhibit a single sign that business had slowed. UBS' downgrading of Under Armour reminded Cramer of efforts to call a top on Crocs (CROX - Cramer's Take - Stockpickr), which turned out to be wrong.

The UBS analysts' conclusions are based on "flawed methodology," Cramer said. Their assessment is based on extrapolation and anecdotal evidence from visits to sporting goods stores. Cramer acknowledged that Under Armour has been hurt by unseasonably warm weather, and that the stock "isn't blowing the lights out so far this quarter."

Nevertheless, for the stock to tumble from $78 a share to $58 because of a rumor of slower sales is excessive. When the weather does cool down this season, sales should pick up.

To short Under Armour is to bet that the weather will not turn cold this year and that the revamping that Plank was talking about won't work. "The downgrade is just plain wrong," Cramer said. He urged viewers stay with Under Armour.