Today I wanna talk about Nike as interesting stock.
So, good news are: 1) Nike all this years had good financial results, have big competetive advantage. Revenues growth without big growth of administrative costs 2) Even with last 2020 year and COVID-19 pandemic, company shows good results 3) Overall financial safety, even with big debts 4) Company management allowed short-term investing to stabilise company from COVID-19 aftermath.Inventories become smaller.
Bad news at now are: 1) China's boycot. If conflict escalation will continue, Nike and many other companies can lost one of the biggest markets in the world. (but at the same time just need to wait and watch) 2) Now Nike's value is overvalued, and earlier or later will go back, but all of that will depend from markets value opinion. And for next 2 month will published new 10-Q statement. So, it will be higher volatility. And interesting, that in the end of december of 2020 insiders sold very big ammount of stocks - more then 1 million. And all insider sellings were big enough.
So at my opinion we can wait for growth of prices in waiting new 10-Q report, but at the same time be careful with speculating and investing in this company. From one hand, we can expect growth before publishing of new statement, from other hand - we can expect, that company will fall down and back to the fair value area (now it is nearly from 98 to 103 $)
That is just autor opinion, no recomends. All investing involve risk of loosing part or all invested resources, past success doesn't guarantee future success.
Comment
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So, now conflicts between USA and China became deeper. Now are many companies under western sanctions on a cotton.
Producing of Nike is placed mostfully in China.
And I think, at nearest time conflict will be escalated and hotter.
Better idea at my opinion - is waiting and watching.
Don't you see a head and shoulders going down? Just curious? ty
ValueInvest_Pro
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@zumaTech, Hello, I don't use technical analysis. Usually I use fundamental analythis to understand what is happening with company and just say my vision and opinion.
VinodShekhapuram
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- insider selling makes sense, the stock has grown lot since one year, they may doing profit booking. My view is that insider selling is not worry for NIKE
Yep, I think, that you talk right things.
Yes, they can don't care about Nike business, but they sell so much - it can be a signal, that something or everything will go wrong. Usually insiders have more info then us.
VinodShekhapuram
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@ValueInvest_Pro, also compared to other companies, NKE invested heavily in digital / ecommerce. That's why they were able to sustain even during pandemic. We have to watch out and see how it goes