NKE

The one thing they do n't spend money on is Nike shoes, and that's a good thing. I still get questions about "Nike", and I still do n't like that arrow.

The stock announced its earnings yesterday and is down another 7%. If you look at the big picture, you'll wonder how a company like Nike can continue to decline? Well, the decline in Nike is very similar to the prospect of a labor market rebound that we have been witnessing in a spectacular way, not just this year, but for many years past.

It seems that Nike cannot get out of its predicament. We usually look at short-term charts. This is a weekly chart covering 15 years. The reason for showing this is that you can see the price here in the mid-thirties; we haven't been at this level for a long time.

It has been a very bumpy road lately. Our downward trend also continues largely steadily .

So, for instance, Nike, right? Nike is basically at multi-deade lows, at 52- week lows. It has been a horrendous performer. And so, what you see into quarter end is window undressing where institutional money managers sell if they were holding Nike, they dump Nike into quarter end because they don't want to show it to the clients that they were in it.

Nike, NKE, $35. I still have great faith in this stock. This is an absolutely devastated stock. In this case, the forward P is below 20.

And remember, I believe Nike's gross margin and net margin will bounce back incredibly in the next two to three years. And the impact this will have on the company's bottom line is incredible.

And so in my opinion, you will see earnings per share in the next two to three years. I could be wrong. But I think earnings per share will skyrocket.

We will get the results of Nike's profits. I mean, the company has been under tremendous pressure this year. Their shares have fallen by more than 44%, and are trading near their lowest levels in more than a decade.

Wall Street expects earnings per share of 44 cents and revenue of $11.7 billion. I think the report is less about whether they can surpass those numbers and more about whether Elliott Hill’s reform plan is starting to show in stabilizing sales and improving gross profit margins.

Nike's stock is among the worst performers in the S&P 500 index over the past year, having fallen by about 50%. It has also declined by more than 44% since the beginning of the year, and bets are increasing that the stock will fall by as much as 6.3 %.

That's a large number of people who are actively betting against a stock with a market capitalization of $53 billion.

One of the companies I follow is Nike, which was, you know, ... There is a well-documented conversation between Warren Buffett and Lou Simpson, who was one of the biggest fans of Nike, about how much he liked it and how great its business was.

I believe its stock price has fallen by about 80% from its peak , and it has lost a few weeks, hitting its lowest levels almost daily. So, it was like a car accident. I check on her from time to time to see where she is .

I don't know how she will recover from here, but I think that evaluating her at some point makes it interesting enough.