Nike Inc (NKE)

The industry has just had a huge amount of growth. They have some pressure from Adidas, which is really coming out with new lines. You have Under Armour (UA-N) on the other side. When you put it all together, this has been one of the few bright spots in retail. The 3 of these trade at multiples well beyond what others are trading at. She would be a little cautious.

(Market Call Minute) A good entry point. They are consistent generators of ROE.

Just reported and were disappointing on their revenue and future order front. Thinks the shoe business has peaked out.

He likes this. It has kind of meandered down recently, and is at a critical support level at $53-$54, a previous February low. If it falls below, there might be a technical problem. They are moving more and more into women’s athletic wear and trying to penetrate that market. They are also moving into China as well. Those are their 2 major growth engines. Trading at 23X earnings and he thinks the market is shifting slightly away from growth names into some of the value names. This is not necessarily a value name. However, you are paying 23X for 13% growth.

(Market Call Minute.) Valuation is a little too high. Other companies are starting to steal market share. Thinks that the best growth days for them are over.

One of the preeminent sportswear companies. They have very high market share, but also have a lot of competition. Haven’t demonstrated that they are necessarily able to get into a space like yoga wear successfully and become one of the well-known brands. Feels that over the medium and long term they will do well. This is something you want to accumulate over time on pullbacks.

This has been a great performer over the last couple of years. Scores in the top 5% on price momentum. Valuation is still pretty reasonable. Very strong ROE’s at 30%. 25X PE looks a little rich, but they have a history of continuing to find new sources of revenue and growth.

It is a great brand name and longer term you will be fine holding on to it. These short term moves are hard to call. When you get a pullback in these companies, it is an excellent buying opportunity.

It came down nicely and this is an opportunity to buy more. They beat earnings 15 quarters in a row. They are shareholder friendly and just announced a share buyback program. Margins in the US are a risk, as well as climbing inventory levels.

(A Top Pick March 16/15. Up 20.8%.) Had a 2 for one stock split. Sales in China were awesome with something like 35% more basketball shoes. Sold his holdings last fall, almost at the peak, when it was trading at 30X earnings. Still pretty highly valued. Would prefer it in the low 20X earnings.

World’s largest maker of apparel and footwear. Footwear is 60% of their revenue. They continue to do well across all lines in key geographies, including China. Their big opportunity is in women’s apparel on a go forward basis. Have beaten consensus earnings in the last 14 consecutive quarters. Recently announced a 14% dividend increase and a $12 billion share buyback. Growth rate is probably 14-15%. The recent weakness, down to the 200 day moving average, represents a good buying opportunity. Dividend yield of 1.09%.

You have to love the stock. It just keeps on going. It is in a long term upward trend so you have to assume it will continue to do well. It is time to buy runners for the Christmas season.

Record high today. He wishes he owned it. He underestimated their earnings. You will go up and down with the market. Great brand and a great company.

Has an incredible balance sheet, which drives a virtuous cycle of reinvestment. It is a dominant brand in sports retail. The consumer has been the one bright light in the market. Very low levels of debt. Has extremely fast growth of 16%, 17%, 18%. Dividend yield of 0.89%.

The best performing Dow component this year. They had a very good year last year, which was basically because of the World Cup. It was doubtful that they would outperform on the earnings side this year, but they have. Had some issues in China and he thinks China is going to be the growth area for them. Dividend yield of 1.01%.