In recent articles (here and here) I disclosed that I had written covered calls on Chevron Corporation (CVX) and Nike, Inc. (NKE) in an effort to merely skim additional income. The NKE covered calls are working out so far but they expire March 19th and anything can happen between now and expiry (especially [...]
Nike, Inc. (NKE) is a wonderful company. Shares, however, currently appear to be richly valued. I wish to retain my shares in perpetuity, and therefore, am not prepared to sell my shares at a profit, crystalize my gains, and incur the related tax liability. I am, therefore, employing a conservative short-term out-of-the-money covered call option [...]
Despite increased competition Nike, Inc. (NKE) stands to benefit from the growing global middle class. I view NKE as an attractive long-term investment in that it consistently generates strong Free Cash Flow and has a Balance Sheet which reflects minimal Intangible Assets and Goodwill. Summary NKE faces stiff competition but it has demonstrated that [...]
Nike, Inc. (NKE) is a great company in which I intend to hold shares for the long-term. In early February 2019 I wrote out of the money covered calls on the underlying shares I own. Shares have experienced a roller coaster ride subsequent to early February and are now trading a few cents/share above my [...]
Summary In early February 2019 I viewed NKE as expensive and wrote April 2019 $87.50 covered calls. NKE released strong Q3 results after the March 21st market close but results disappointed investors and its share price pulled back over 6.50% on March 22nd from the previous day’s ~$88 close. I view NKE as a solid [...]
Nike is a great company to hold in a well diversified portfolio. The challenge at this stage is that its valuation appears to be somewhat lofty based on earnings projections and taking into account its recently announced 4 year $15B stock repurchase program. I will not be adding to my current position at current levels. [...]
Summary After the market closed on September 25th, NKE reported Q1 FY2019 results and its share price pulled back ~4% in afterhours trading. The share price rebounded to close down only 1.25% on September 26th. The Federal Reserve increased rates 25 basis points on September 26th and a further increase is anticipated in December. If [...]
Three high quality companies recently released earnings and guidance. Despite strong results and favorable earnings projections, investors have bid up the stock price of these companies to levels where there is a disconnect between the underlying fundamentals and the company's valuation. Summary Even investing in high quality companies can result in inferior investment returns. Investing [...]
Summary Even investing in high quality companies can result in inferior investment returns. Investing in a high quality company does not mean invest at any price. Pay particularly close attention to valuation levels. We are in the late stages of one of the longest bull markets in US history. Investors should be cautious when making [...]
Summary NKE reported Q3 results March 22, 2018 which were better than expected when the one-time ~$2B impact from the Tax Cuts and Job Act is excluded. Despite the tax hit, NKE has indicated the TCJ is slightly favorable in terms of its normalized steady state effective tax rate and because it will provide NKE [...]
