Nike's (NKE) a Buy into Annual Meeting - Cramer
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Shares of Nike (NYSE: NKE) are trading lower, but still ahead of the market, ahead of the company's annual meeting scheduled for Wednesday, May 5, 2010. Shares are down 0.48% to $77.40.
Jim Cramer is bullish going into the meeting, noting that this will be the first one in three years for the company. Cramer noted that, generally, the shares gain about 1% ahead of the meeting, and about 3% thereafter.
Some key metrics that Cramer notes will make this an extra special meeting are that inventories are down 12%, costs have been cut 3%, and the reported EPS of $1.01 for Q110 was $0.12 above Street estimates.
One key item to pay attention to is future orders, which allows retailers to lock-in prices months ahead of time. Cramer notes that an increase in future orders signals a positive turn in business.
Since Nike is 65% international, and orders in China alone are up 9%, Cramer is a buyer into the annual meeting, but not if the shares trade too high ahead of time. He says to wait for the pullback before buying in if that's the case.
Jim Cramer is bullish going into the meeting, noting that this will be the first one in three years for the company. Cramer noted that, generally, the shares gain about 1% ahead of the meeting, and about 3% thereafter.
Some key metrics that Cramer notes will make this an extra special meeting are that inventories are down 12%, costs have been cut 3%, and the reported EPS of $1.01 for Q110 was $0.12 above Street estimates.
One key item to pay attention to is future orders, which allows retailers to lock-in prices months ahead of time. Cramer notes that an increase in future orders signals a positive turn in business.
Since Nike is 65% international, and orders in China alone are up 9%, Cramer is a buyer into the annual meeting, but not if the shares trade too high ahead of time. He says to wait for the pullback before buying in if that's the case.
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