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Jim Grant thinks you should short Under Armour because of 'dad bods' (UA)

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Jim Grant has the next best idea on Under Armour.

And it is about "dad bods."

The dad-bod look is a sort of middle ground between a man in good shape and one with a small beer belly. It has become "popular" after a 19-year-old college student wrote a "premiere dad bod 101"post that went viral.

And according to market legend Grant, this probably isn't good news for athletic-apparel brands like Under Armour.

ValueWalk's Jacob Wolinsky tweeted what looks like an excerpt of Grant's Interest Rate Observer, in which Grant lays out the thesis.

Here's what Grant had to say:

Trends seemingly come out of nowhere. Who can account for it? A UA short seller advises Lorenz that the "sneakerhead" market (an eBay-hosted emporium of athletic footwear) has "rolled over." A Clemson University student named Mackenzie Pearson writing in the Clemson Odyssey, coined the term "dad bod" and started a national celebration of the kind of guy who's not scared of a cheat meal, because he eats just about anything and everything." The untoned "dad body" is not Plank's core demographic.

With a $17.4 billion market cap, UA is a large, liquid stock. With a short interest of 7.8% of the float, it is not a crowded short. The insiders are selling $87.4 million's worth of stock at an average price of $76.23 in the year to date. Why shouldn't you?

And here's that tweet:

The stock is up 45% over the past 12 months.

SEE ALSO: Science proves that the trendy 'dad bod' that girls are going crazy over is for real

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NOW WATCH: 9 Surprising Facts About Under Armour — The Hottest Sportswear Company In The World


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