It is October 18, 1985. Today Nike launched a new brand of Basketball shoes known as Air Jordans. They are riding on the brand of star basketball player Michael Jordan. Nike has not launched extensive advertising quite yet, but it is rumored that Michael Jordan will be wearing them in the game. They are pretty cool shoes and this could be a great product line for the corporation.
This stock has fallen this year as the company’s net income has fallen 75% due to decreasing margins. The company’s top line continues to grow but unless the issues with margins are handled, this company could continue to lose money. The stock is only trading at 3 times this year’s earnings and has a serious possibility for increasing net income. The stock also has a nice dividend that comes with it. If Nike can successfully launch this new brand, it could be a breakthrough moment for the stock.
Nike Inc. (NYSE: NKE)
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