Time is definitely not on my side, but since a few of you have contacted me, it is only appropriate to stay in touch. Besides, it brings a rule of mine into play, being patient.
Revenues Guide Turnarounds
It makes sense that companies, those basking in past glory, should remain out of focus until their futures look clearer. Recently, this has come to light with Boeing. Today, it became apparent that it’s Nike’s turn.
I’ve been a believer that “someday my prince will come” was a reason to stick with this one. I was not sure. After making about 10% on the upside in my first entry, it was obvious that Nike still had problems. A couple of earnings announcements ago, I sold covered calls and used the proceeds to buy puts. Earnings, and more so revenues, were less than expected. The stock dropped. The puts saved the day and made me money. I still hold the stock, but given the negative vibe on the stock, I used puts as insurance.
This morning, I sold the puts and just watched. Nike stock was acting well. After the earnings announcement, Nike roared almost 11% higher. I took patience this time. It’s time for more.
It’s not time to make a change. Stick to your principles and be patient. Quite often, it is best to believe in yourself, even though others believe differently. Nike has gone through hell over the last year. It’s a great stock that stood up to its competition in the markets. Next step is dealing tariffs, then I hope it buys a complementary product that sells with its shoes. Be patient. It works.