Nike Inc (NKE)

Added recently around current level of $77. Online push didn't work; it can be part of the business, but not the main part. New CEO has gone back to basics. Huge FCF, minimal debt. Incredibly well positioned. Chance to buy on sale the world's best business in the sector.

Trades around 20x PE. Options: implied volatility is over 30, so you're paid twice as much as the broader market. Because the stock has been under pressure for a long time, these options are more expensive than others. Currently, at May $70 puts you can get $3.90, an attractive 5% return if shares stay flat over 3 months. 

Its peers are coming back, but Nike has a tough road ahead. Is -31% the past year. It looks cheap, but it will take several quarters for the activist investor to improve the company. It's dead money for 3-6 months.

Is -30% on the past year. Remember, they have changed management, so don't sell it. See what the new CEO does.

Bought in the last 6 months. Turnaround story of 2-3 years, but fixable. Phenomenal brand. Reporting tomorrow. For new $$, he tends to wait for earnings. See what comes tomorrow. Valuation of 28x looks rich, but it's because earnings have been hit so hard.

It reports Thursday. The CEO will need to explain how the company will reignite the brand globally and show innovation. It's amazing how much damage the last CEO did, something that won't be easy to fix.

Have a new CEO, so give him time. Shares could be down one more leg--then buy--before it moves up.

Went from growth to value very quickly. Tremendously powerful brand and business economics. Phenomenal balance sheet. Hit really hard. Discretionary item. Softness in consumer and in China. Lack of product innovation. 

In the end, brand remains intact. Trades around 20x earnings. Earnings will get hit hard this year, and so the multiple looks high. Attractive turnaround. Likes the new CEO. Can regain its crown. Yield is 1.7%.

The consumer is biting back after all these rising prices. Nike is one company this because they raised sneaker prices too far, so sales have fallen by almost 24% this year.

The multiple is still elevated. They face more competition, especially overseas. And consumers are spending less.

She sold it last spring. It's good that they changed the CEO. Wait and see. They have lost so much market share. They need new product.

They just change the CEO. Shares are down 20% this year. He'd like to enter this, but it's the first time her can recall when it's facing sustainable competition and opens up the door to more. Their brand need to refresh. The cost of attaching star athletes has gotten very expensive. The company needs to innovate.

They face more competition, slower sales in leisurewear, a weaker Chinese consumer and shares trading at 25x PE with no growth in the next 4 years.

They need to innovate. Lines such as the Jordans aren't selling like they used to. They're not innovating. Their biggest celebrity athletes are aging, like LeBron and Kevin Durant--do kids want their shoes. They trade at a high 25x PE for no growth.

Outlook continues to be negative, underwhelming. On the technicals, stock price is well below the 200-day MA. And 200-day MA is trending lower. He wouldn't buy a name below the 200-day by that margin. Give it some time, look for basing.

Near-term outlook for earnings growth is quite weak, below 5%. Not great for a stock trading at 25-26x earnings.