Many years ago I had drawn this 1.7-1.3 level in the PSR (or Price-to-Sales Ratio) for
NKE and the recent smack down for
NKE stock has put it within reach of the 1.7-1.3 X Sales zone.
The RETURN for shareholders has been negative for the last 7 years in
NKE when adjusted for inflation. The stock is basically unchanged back to 2018 here (not factoring dividends).
What is the point of this?
When a stock gets sold down on bad news, there is an underlying level of value which will support it from that point forward. There are always portfolio managers looking to invest in stocks that have had solid long term fundamentals with rising sales and earnings and a nearly recession-proof business model.
The opposite is also true that there are NO BUYERS for a stock once it gets ridiculously overpriced and no one can justify buying shares are high prices. The only hope you have at that point is for momentum to attract new buyers who aren't paying attention to valuation and because of tax laws that encourage people to hold on for long term capital gains tax rates to kick in for holding periods greater than 1 year.
Thanks to TradingView for providing all of this high quality fundamental information AND for the ability to graph this data so we can visualize and see where the value is in the marketplace.
The value is down here in
NKE shares so it is a good time to start buying.
Cheers,
Tim
3:47PM July 1, 2024 76.67 last +1.30 +1.72%
The RETURN for shareholders has been negative for the last 7 years in
What is the point of this?
When a stock gets sold down on bad news, there is an underlying level of value which will support it from that point forward. There are always portfolio managers looking to invest in stocks that have had solid long term fundamentals with rising sales and earnings and a nearly recession-proof business model.
The opposite is also true that there are NO BUYERS for a stock once it gets ridiculously overpriced and no one can justify buying shares are high prices. The only hope you have at that point is for momentum to attract new buyers who aren't paying attention to valuation and because of tax laws that encourage people to hold on for long term capital gains tax rates to kick in for holding periods greater than 1 year.
Thanks to TradingView for providing all of this high quality fundamental information AND for the ability to graph this data so we can visualize and see where the value is in the marketplace.
The value is down here in
Cheers,
Tim
3:47PM July 1, 2024 76.67 last +1.30 +1.72%
Nota
Here we are one month later since the This is what makes a market. People analyzing and deciding. At the end of the day, we need to figure out what the bigger portfolio managers are going to do and try to do it before them if we are to ride their buying and selling power in the stock market.
Investing is so many different skills all at once, from long term to short term strategies to 'make money' in the market.
With
Nota
Tim
10:15AM EST 8/13/2024 76.78 last
Nota
Nike is trading very normally around key levels, especially reacting to the "EARNINGS LEVEL" as presented here. If you don't use Earnings Levels, this is clearly a great example to show you why should be watching the levels and using them to place exits, entries and to define trend.
Now that
Upside target is back to the "Earnings Level" again.
Tim
September 16, 2024 10:00AM EST
Nota
Nice rally on the new CEO announcement above and beyond the EARNINGS LEVEL for $NKE.Ok to bank the profits here.
Tim
$86+ last, Friday 9/20/2024 1:41PM EST
Nota
Here is the chart of
Tim
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
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Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.