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Retail investor: Nike $NKE just hit a 52 week low. That's gotta be a steal at these prices right?


Me: Maybe. Let's actually check instead of guessing.
Retail investor: It's Nike. Everybody knows Nike.
Me: Brand recognition doesn't matter... Pull up the earnings. Are profits growing or shrinking over the last few years?
Retail investor: ...I don't actually know.
Me: That's the whole question. A falling price with growing profits is a dip. A falling price with falling profits is a company in trouble...
Retail investor: So a 52 week low means nothing by itself?
Me: Nothing. It's a price, not a value. Where the EPS goes is where the stock price goes... Nikes EPS is down & to the right... Just like the stock. Its justified and not a deal...
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GateUser-06070724
14 hours ago
First Review
An excellent example of the difference between price and value.
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