Sources: VF Selling Sports Group To Fanatics Angels P Talks Committing Future Earnings To Fantex MJ's Son Partners With Tech Startup WaitTime LeBron Not Worried About Nike Q3 Results Nike Posts Solid Q3 Amid Adidas Resurgence GoPro To Cut 270 Full-Time Jobs Nike Remains Top Provider For Tourney Teams Michigan Gets Regular Jordan Jerseys Back UNC Football's Move To Jordan Could Pay Off Dodgers Owner Leads $100M DraftKings Investment
WORD ON THE STREET: NIKE TRADING TO MIXED REVIEWS
Published December 8, 1997
Nike stock value was examined by MA-based Dreman Value Management Money Manager John Dorfman for BLOOMBERG BUSINESS NEWS. Dorfman noted that Nike has seen its stock fall 20% this year, and that with Standard & Poor's 500 up about 33% for the year, Nike has trailed the market by some 53 percentage points -- "a truly awful performance." Sands Brothers & Co's Brad Cohen last week "slapped a 'sell' recommendation" on Nike. Cohen doesn't think the stock will be a "timely purchase" for another 12-24 months, though he said he might reconsider if the stock drops below $44. Currently, it's trading between $47 and $48. Dorfman reported that analytical opinion "is pretty evenly split on Nike," noting that the Bloomberg recommendation database shows 13 "buy" recommendations, nine "holds" and two "sells." Dorfman concluded that Nike "will show zero growth in earnings" for the current FY, with "about" 15% growth next year. Dorfman: "So is the stock cheap enough to buy? Not for me. My job is to try to buy stocks when they're unreasonably cheap" (BLOOMBERG NEWS/SEATTLE TIMES, 12/7).