Shares of MA-based Reebok Int'l "may be ready for a
rebound after sliding" 50% last year, as some "big investors
bet" that the company has "hit bottom," according to
BLOOMBERG NEWS. Investors have "put about" $30M into Reebok
since July '98, "even as the shares continued to decline."
Chicago-based Yacktman Asset Management VP Steve Yacktman:
"I think people are seeing the turn. At some point people
have to start buying shoes again. You've seen Nike's stock
move on that, but Reebok hasn't yet." The company's shares
have risen 19% since January 1, and analysts say "some new
shoe models could give the company a further lift." Credit
Suisse analyst Dennis Rosenberg, who rates the stock "buy":
"Their DMX product has been selling very strongly, it's one
of the best technologies out there." But many investors,
however, are still "skeptical" of the company's ability to
"sustain a comeback." Van Kasper analyst John Shanley: "I
think they have the components for a turnaround. I'm just
leery about their ability to execute" (BLOOMBERG, 3/13).
LIFE AFTER MJ? On MSN's "Money Central," Nancy Gondo
examined the "rebound" of Nike shares. After dropping from
its $76 "high" in February '97 to "a low of $31" last
September, Nike has "whipped itself back into shape." Nike
has added hiking boots to inventory, "cleaned up its factory
conditions and prepared for an NBA without Michael Jordan.
And Wall Street has paid attention." Hambrecht & Quist
analyst Shawn Milne, on Nike: "The company's done a very
good job of cutting inventory, cutting costs. I think the
market has rewarded that" (MONEY CENTRAL, 3/12).
SHIP SHAPE: Fila USA will outsource its footwear and
apparel distribution functions to Ryder Integrated
Logistics. The move will affect two MD facilities and a
warehouse under construction in MD. The approximately 80
employees and 85 lease labor contract employees affected all
have the option of transferring to Ryder (Fila). In
Baltimore, Shanon Murray reports that the move will "save
the company about" $10M over five years (SUN, 3/13).
