Hi Mike,
Re: NKE. You gave very compelling arguments
against NKE in your Microsoft Investor article.
Unfortunately these comments are coming not from an
Investor but from a Speculator. :-(((
It's true that NKE might go down to twenties.
It's true that the future for 1998 and part of 1999 is
cloudy. But looking at the other hand of the story you have
a great company, a great consumer franchise, a leader in
its field selling for under 1.5 PSR. Such opportunities
don't appear every night. That's why Sanborn is buying.
Even though he has to care about his quarterly
results, he is taking a long term view. I would have expected
you to do the same and to give a coherent strategy for
long-term investors. Dollar-cost-averaging, buying
in 3 parts at $50-35-20, whatever. Instead of that
I've got a short term speculation coupled with journalistic
sensationalism - what is Buffett doing, XXX and YYY is buying,
smart money is selling, etc.
Personally, I don't give a damn if Buffett is
buying. I'd preferred if nobody spread Buffett's rumour.
I still haven't finished my buying at $35. :-(((
The Buffett rumour illustrates one thing though - NKE
is in a spotlight. So when something really positive
happens the stock will take off like a rocket giving
no chance for your readers to wait for your "Buy!"
recommendation.
Just for curiosity sake, NKE was named by Fools
one of $1000 stocks for year 20X0 (I think 2010).
That's a possibility for which people invest - not for
which people speculate.
Good luck
Jurgis |
