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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: kris b who wrote (76281)	12/20/2006 11:44:00 PM
From: jimmg	Read Replies (1) \| Respond to of 110194

kris, it sounds like your're short nike and are looking for things to be negative about. I would like to go short nike because I hate the company. However, they had a very solid quarter. 1. China and Korea revenue up 30%. 2. Central Europe up 30%. 3. Asia/Pacific up 15%. 4. US up a solid 8%. 5. Inventory growth is not a significant as first blush. Severe weakening of the dollar boosted quarter-end inventories. Constant dollar inventory was up 11% as revenue was up 9%. 6. Nike retail up 11%. 7. Most of the increase in expenses was stock option accounting vs. none last year. 8. Huge stock buybacks and they still have $6 per share net cash. 9. Converse up 50%. Given that Nike stock is up 25% plus over the past 3 months, I'm not sure if this earnings report is enough to drive the stock much higher in the short run, but this was a very solid quarter. If you can't see that, I think you're being way too pessimistic.