Study NKE and BN
- 11/23/2024 – answers from MS Copilot
I couldn’t find a specific thesis document from Bill Ackman on Nike (NKE). However, I did find some information about his investment in Nike. Ackman’s hedge fund, Pershing Square Capital, recently took a significant stake in Nike, believing in its potential for recovery and growth despite recent challenges.
Would you like more details on Ackman’s investment strategy or his general approach to investing in companies like Nike?
Bill Ackman’s investment strategy often involves taking concentrated positions in a few select companies where he sees significant growth potential. Here are some key points about his approach to investing in Nike (NKE):
- Focused Portfolio: Ackman’s portfolio typically contains fewer than ten positions, allowing him to deeply understand and influence each investment.
- Significant Stake: Ackman significantly increased his stake in Nike by 436% between June and September 2024, making it one of his top holdings.
- Value Play: Despite Nike’s stock price being down by about 30% year-to-date, Ackman sees it as a value play with a P/E ratio of 22, which could appeal to value investors.
- New CEO: Ackman is optimistic about Nike’s new CEO, Eliott Hill, who has a deep understanding of the company and is expected to drive a turnaround.
- Brand Strength: Ackman believes in Nike’s strong brand value and its potential to bounce back despite recent challenges.
Ackman’s strategy is to leverage his influence and insights to drive value in companies he believes in. Do you think this approach aligns with your investment philosophy?
The US-China tariffs could have several impacts on Nike (NKE):
- Increased Costs: Tariffs on Chinese imports could raise production costs for Nike, as a significant portion of its footwear and apparel is manufactured in China. This might lead to higher prices for consumers.
- Supply Chain Disruptions: The tariffs could disrupt Nike’s supply chain, forcing the company to find alternative manufacturing locations or renegotiate supplier contracts.
- Competitive Disadvantage: Higher costs could put Nike at a competitive disadvantage compared to brands that source more of their products from countries not affected by the tariffs.
- Consumer Impact: Higher prices might deter some consumers, potentially affecting sales and revenue.
- Strategic Adjustments: Nike might need to accelerate its efforts to diversify its manufacturing base and invest in automation and other cost-saving technologies.
Despite these challenges, Nike has a strong global footprint and brand loyalty, which could help mitigate some of the negative impacts.
Would you like to know more about how Nike is responding to these challenges?
How Will Trump Tariffs Affect Sneaker Prices? Here’s Everything You Need to Know – Features
1. The new CEO has a lot to fix
2. It’s the leading footwear and apparel brand
3. A rebound might take time, so this is a long-term play
- 11/16/2024 – Bill Ackman’s Pershing Square piles into Nike and Brookfield among Q3 moves (NYSE:NKE) | Seeking Alpha
Pershing Square disclosed the information in its latest 13F filing for the three months ended September 30, 2024, published on Thursday.
The hedge fund had bought 3M class B shares in the world’s largest shoe company in Q2. In Q3, Pershing upped that stake by a whopping 435.5% to 16.3M shares.
Nike (NKE) – a barometer for consumer trends – has been struggling with sluggish demand and a decline in sales. In September, it announced the return of company veteran Elliott Hill as chief executive officer.
Among Pershing’s other Q3 moves, it increased its holdings in Canadian investment firm Brookfield (NYSE:BN) by a massive 377.6% to 32.7M class A limited voting shares.
- 11/15/2024 – Ackman also raised his stake in Nike to 16.3 million shares from 3 million the prior quarter, and in Canadian investment manager Brookfield Corp. to 32.7 million from 6.8 million shares. Pershing also trimmed stakes in Hilton and Restaurant Brands International, parent of Burger King. (https://www.barrons.com/articles/powell-buffett-dimon-trump-stocks-what-to-know-today-70177b27)
Where Are Nike Shoes Made 2024: (Air Force 1 + Air Max)
What Percentage of Nike Shoes are Made in China?
Around 25% of Nike shoes are made in China.
In China, you will find 160 Nike factories where they manufacture 25% of Nike Shoes. China has given a lot of facilities to entrepreneurs. Besides, its leather industry has grown rapidly. Consequently, many shoe manufacturers have factories in China. In 1981, Nike started its first manufacturing plant in China. Today, the shoe brand has more than 160 factories in China. After Vietnam, China is the largest manufacturing country of Nike Shoes.
Is Nike Pulling Out of China? The answer is YES. Nike is pulling out of China. Recently, Nike has joined an expanding list of international media and tech companies that are pulling out of China. Besides, the board of directors at Nike Inc has voted against sourcing goods and raw materials from China. As China is violating surrounding human rights, Nike has decided to pull out of China.
Nike Sustainability – Interactive Map
US-China trade war: Shoe giants urge Trump to end tariffs
from MS Copilot – Nike is not pulling out of China entirely. While there have been some adjustments, such as halting production at a few factories and streamlining their supply chain due to declining consumer demand, Nike still maintains a significant presence in China. The company’s CEO, John Donahoe, has emphasized that decoupling from China would be “disastrous” for global trade and that they remain committed to operating in China and other markets.
It seems like Nike is balancing its global operations while navigating geopolitical and economic challenges. Do you have any specific concerns or interests related to Nike’s operations in China?
Tilson’s study of NKE
- 08/15/2024 – Bill Ackman buys a stake in Nike; Cooling inflation; All eyes on the Fed; Real wage growth for 15th consecutive month; Pictures from Lake Sunapee, New Hampshire | Stansberry Research
- My ‘first look’ at Nike | Articles | Stansberry Research
- Diving deeper into Nike | Articles | Stansberry Research
