Wednesday, December 20, 2006

NKE - Nike

The stock has been a one-thousand pound gorilla of late

That chart is indeed the true Magilla. Jan105 calls actually look like a cheap shot at 85-cents. Where NKE is concerned these days, it doesn't hurt that Warren Buffet recently raised his stake in the company, or that Adidas recently warned, or that Nike has a collaboration with Apple, or that Nike could surprise with a stock split announcement. Some analysts, however, have cautioned that Nike could miss estimates this time around because of a shift toward casual skate-type products and European-styled silhouettes. Wouldn't that be nasty. But most analysts love the stock, including UBS which has a target of $112. Stocks that trade at lifetime highs keep me wary especially consumer stocks in a slowing consumer environment.

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