Here at Tematica Research, just outside of Washington, DC, we are “enjoying” a good old fashion summer heatwave. The hottest summer in four years, yesterday marked the 6th straight day of highs at or above 90 degrees.

Now for those in the Midwest and Southwest, you’re probably thinking, that’s nothing!

The magic we have here in DC to throw into the mix of steamy temperatures is the fact that the city is built on what was once swamp land, and with that comes humidity — lots of it! So temps in the 90’s can easily climb up into the 105 degree heat index range, and with that comes that little bead of sweat that starts on the back of your neck, rolls down between your shoulder blades, further down to your lower back and then . . . well, you know where that story is going.

All of this reminds us of what put athletic apparel manufacturer Under Armour (UA) on the map — moisture-wicking synthetic fabric. The company that started in the basement of CEO Kevin Plank’s grandmother in 1996, has grown into a nearly $4 billion company that specializes in making sure all that sweat we humans produce is evaporated away rather than ending up where the sun don’t shine.

The heatwave across much of the country allows for this cheeky opening narrative to this story. The real reason we’re talking about Under Armour now is, given the pull-back in shares after the company’s 2nd quarter earnings announcement, we’re using the opportunity to make a move and add them to the Tematica Select List.

In this week’s Tematica Investing:

• We are adding Under Armour (UA) shares to the Tematica Select List as part of our Rise & Fall investing theme, with a $55 price target. There is no recommended protective stop loss at this time.
• Given the robust movie slate for 2H 2016, we are keeping Content is King Regal Entertainment (RGC) shares on the Tematica Select List, despite a modest $0.01 per share earnings miss for the June quarter.
• We have earnings from Amazon (AMZN) and Alphabet (GOOGL) later this week, and we preview what’s expected and what we’ll be looking for in those reports.
• Starbucks is added to Goldman’s Conviction List, more confirmation for our position in the coffee giant.
• AT&T (T) loses the Yahoo! (YHOO) bid to Verizon (VZ), and we are rather happy with that.

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