Worth the risk to short NKE

24 Sep 2019

NKE is trading at a P/E of 35 while the industry is just 24.9, suggesting a price of only 62 instead of 87. At the same time earning per share per quartes hasn´t increased at all in the last few years, actually they are way lower than in 2013-2015 when the stock was trading at a price between 30-50, so how can we expect to keep going up?
The ATH for the stock is 90 USD, so we are trading only at only 3% down from there. I will take the risk and going short from 87.3 expecting a decreased to at least 70 USD and a stop loss of 92 just in case it decide to test the ATH before going down.
Today we will have new earnings comings, so we might start getting the decrease in price.

Good luck traders!!!!!

25 Sep 2019

Dagangan aktif

Earnings went in the wrong way for us and in the premarket NKE is trading around 91.5, brand new ATH. Is a big improve in the EPS to 0.86 (best quarter since 2015) but I will keep with this one and actually will double my bet on it. Just if they are able to keep with that EPS for a whole year and considering the P/E for the industry of 24.9 we should have a price of 4x0.86x24.9=85.65, lower than the current price, and I honestly consider that the trading war will affect that performance as "almost" every NIKE product is made in China.

NEW STOP LOSS WILL BE SET UP AT 98.00!!!!
Let see if this reverse!!!
Good luck traders!!!!