The herd tends to overreact to extremes, overstimulating a stock on positive momentum and equally over-panicking on negative headlines. Nike has been around for 60 years; it went public in the 80s and has dominated Athletic wear and sports fashion for decades. Its recent challenges are a normal occurrence in a successful company’s lifecycle.
Trust and integrity are the keywords, especially in a company whose operating model is built around its “BRAND EQUITY.” Nike seems to have gotten the wake-up call with its current CEO.
I have bought a few shares, but I really want the stock to crash! Nike stock is still overvalued even at current discounts. I love ugly stocks, and the panic button hasn’t really rung on Nike just yet to get me ( really) drooling. I am keeping an eye out and waiting for the opportune entry point to truly “go HAM”.
Nike is an iconic American brand with global appeal; its turnaround will not materialize within 2 years. This is a 10-year bet. Phil Knight was inspired by ASICS in the 60s; ASICS is once again quietly showing the roadmap by focusing on credibility over “politics” and diluted hyper-marketing that feels more like propaganda..
