I almost sold today.
But I took a step back and realized this.
Nike pre-announced a series of layoffs and, on Wednesday, will also announce restructuring.
Nike is turning itself around. . . they see the slowdown in its business and is now making amends.
Business slowdown is not new to this company. . .they have, and will turn this business around soon. . . they will not turn it around overnight. . .it might take a year or two. But if you hang on, you will be rewarded.
Billion-Dollar buyback. . . the world-wide appeal of the brand. . .nothing to worry about. . .turn off that stock ticker and be patient.
Down over 1 after hour after the close. I am afraid it will go down to about 40 in the next few days. The report stated that
business was down in this country as well as Asia, that will hurt. Bad projection for the rest of the year won't help. CNBC did a job
and a half on NKE this afternoon. They were on two or three times bad mouthing Nike. They have more influence than the numbers
in the short run. Maybe I am wrong, but it will go up later this quarter or next. I understand that that was false about Warren
Buffet taking a position on Nike.
I agree that these boards can be tedious.
However, you are contributing to the tedium at least as much as anyone. Did you have anything relevant to say about the business ? No. Just a silly price projection for 1999.
It's morons like you that make these boards so tedious. Remember, your shortsightedness and shorting of the stock can not influence the share price unless you are Warren Buffett. And somehow I don't think you are. The stock is heading back to the 70's by mid 1999. You will eat crow. Lots of it.
I'm a German investor. Adidas rallied since early 1998 from slightly over 200 DM to a close today (XETRA-DAX Frankfurt)of 318 DM,up 50% for the year.This one ain't gonna move much more.
Tell you another story. The second most prestigious brand for soccer and soccer apparel and track&field ware is PUMA.Here's the deal,you figure it out yourselves:
Puma has a market cap of 627mill DM($344,barely more than a NIKE marketing campaign)on 15.3 mill shares outstanding (3/17/1998).
25%are held by a single US-based group in L.A. The remaining float of 11.5 mill shares is owned by 2/3 by US-investors,each
less than 3% of total equity.This was disclosed by PUMA's CEO
joachim zeitz on the annual shareholders meeting last friday.
2/3 in US-hands,although the shares of PUMA are not even traded in the US. This would leave only 4mill shares in free float in Germany. During the last 5 weeks a daily number of 250,000 shares changed hands, increasing to 400,000 at the end of last week and
1.4 mill in the previous two days. This can very obviously never have been triggered by German owners. Share price is up 22% in the last 4 days from a 52 week low of 36DM to now 44. 52-week high is 63DM/share (still 40+%to go)
Remember,soccer world championship, the worlds largest sporting event is up in FRANCE this summer 1998. Heard enough. Set tight limits. GOOD LUCK.