Nike Inc (NKE)

(A Top Pick Jan 14/16. Down 2.22%.) He recently let this one go. It has been a challenging environment for these types of names. There has been intensified competition. More importantly there has been liquidation of several sporting good stores in the US, which took a lot of distribution away from this company.

For some reason, Amazon (AMZN-Q) has not been good for manufacturers like this. This has been a very well-run company. If it keeps getting cheaper, he will probably buy it again. He is still trying to figure out why manufacturers of goods are not selling stuff over the Internet.

They have great margins, return on capital and dominance within the industry. There is a big trend with athletics for leisure. There are a lot of stores that sell this type of stuff that didn’t exist a few years ago. Their success has attracted a lot of competitors. What happens when people stop wanting to go to the grocery store in track pants? Retail in General has been smoked. It could be turning around but she would prefer one without such a high valuations.

There are a lot of these types of companies that have very, very fast hyper growth periods for the brand. This one has had one of the longer runs of any brand, to the point where athletic apparel, a little over a year ago, was at the point where people thought that is all that people were going to wear. Because of this, valuations just got too high. A fantastic business, but everything can have too much of a run. Although this has pulled back, it is still too rich for him, relative to its growth rate.

He is looking for value. This had all kinds of problems getting through $60. It paid the price and sold off big time. This is definitely worth $50 and he would be a buyer right now. With any kind of good news at all, it could reach $60 again very quickly. (Analysts’ price target is $62.04.)

This has a great mobile franchise, and are growing their online brand globally. Great products. For a great brand name like this, you are only paying 25X earnings. Thinks earnings are going to accelerate into next year. Dividend yield of 1.42%. (Analysts’ price target is $61.97.)

It has had a bit of a stumble on a couple of fronts. Their results are lumpy. After an Olympic event their sales tend to get a little soft. Competitors are doing well.

A really solid, multinational company. One of the global Giants in sports footwear and apparel. At these levels, it is starting to look interesting. It has lost a little of momentum, relative to some of the other hot names. It is a marketing machine, and they continue to churn out good quality apparel, and do a brilliant job in marketing and sales. Pulling back into more fairly valued territory, where it becomes interesting. Pays a small dividend that increases every year.

This has been a very expensive company for many years, and doesn’t pay a big dividend, only 1.42%. Trading at around 20X earnings. It has a great brand and a great technology, and they have a great online business. The stock has done poorly because of 1) inventory issues and 2) because of some marketing issues. Buying a global brand that is growing internationally at these levels is good. (Analysts’ price target is $63.52.)

This has been on a year-long slow decline, but is still a dominant company in its industry. Feels this is a longer term holding and that you are fine holding it from here. Thinks it will make new highs in the next 2-3 years.

Under Armour’s (UA-N) numbers came out poor and it affected this one. This one is growing including their online presence. They are doing a lot of business online. People think their growth is dropping but he does not so this is the time to be buying the stock.

Just reported a decent quarter, but was a little light on their guidance, both on the International side and the US domestic side. A very competitive market now. This will remain one of the bellwether names in the market, but there are a lot of upstarts. You need to see the multiple come in a little, and he suspects this to happen over the next couple of quarters.

(A Top Pick Oct13/15. Down 11.39%.) Overall this has been a hot company but there were some worrisome things that started to come up. He sold his holdings earlier this year.

They design shoes and sell athletic wear. The stock has moved sideways over the last little while. Trading at 25X earnings. Thinks it has had a rough ride over the last little while and should trade higher. It has a lot of opportunity on the e-commerce side. He is also looking at more growth in Asia and the emerging markets. Dividend yield of 1.15%.

An international, global brand. As emerging markets get money, they like to buy brand names, rather than generic names. This had a wonderful move in the last couple of years. It consolidates for a bit and then he thinks it will get another leg up. Dividend yield of 1.16%.