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Finance & Investment Club Nike Inc. Just do it. Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque Bo Peng. Company Profile. Founded in 1972 Headquartered in Beaverton, Oregon Mark Parker-CEO and President Industry-Sportswear and Sports Equipment
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Finance & Investment ClubNike Inc.Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque Bo Peng
Company Profile • Founded in 1972 • Headquartered in Beaverton, Oregon • Mark Parker-CEO and President • Industry-Sportswear and Sports Equipment • Number of Employees-30,002 • Main Competitors: Reebok, ADIDAS, AND 1, Converse
Company Profile Cont. • Famous athletes include: Kobe Bryant, Lebron James, LT, Cristiano Ronaldo, Cesc Fabregas • Produce many commercials shown worldwide
Statistics • Price: $67.75 • Mkt Cap: 33.44B • 52Wk High: 70.60 • 52Wk Low: 51.50 • P/E: 18.76 • Forward P/E: 18.96 • Beta: 0.64 • Shares: 492.71M • Vol: 1.56M • EPS: 3.61 Dividend: 0.23 • Inst. Own: 72%
Company Analysis • NIKE: Goddess of victory. • Founded by University of Oregon, Phil Knight & Bill Bowerman in Jan, 1964. • Track running shoes. • Engages in the design, development, and marketing of footwear, apparel, equipment, and accessory products worldwide. • By 1980, 50% market share in the United States athletic shoe market. • Went public in December 1980.
Nike Inc. • Strengths: • Very efficient company, best among its sector. Benefiting from low costs due to its outsourcing of production jobs • Concentrating on their strengths. Soccer, basketball and golf • Partnership with other strong brands (ex. Apple) • Higher ROA than competitors
Nike Inc. • Weakness and Threats • Possible loss of market share due to the Reebok- Adidas merge • Sluggish economy may influence buyers towards cheaper goods. • Up-start firms like Under Armour are building niche markets.
Nike Inc. • Opportunities • Strong global sales and growth. Nike is looking to expand in China primarily, due to this summers Olympics. • Continued expansion into custom shoe business.
Recommendation • Based on our research we rate Nike Inc. a HOLD because even though they are a dominant company the current recession is not a good time for luxury goods such as 150 dollar sneakers and most other Nike goods.