Background on who he is which may provide clues as to why he invested in Nike: https://youtube.com/watch?v=bkCpQk_K_jg
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If they don’t do what these guys say Nike will become an even less desirable stock. You want the stock to go to $50 per share? There is already little interest in stock as it’s gone from170 to 70. You wanna keep the guy that did that ??? Ackman is right. The ceo is a dunce. He needs to go. Nike is a poorly run company with potential.
Guys, look at the ownership structure of NKE. Ain't nothing gonna happen unless PHK says it's gonna happen.
By installing new management he can make the stock pop to 95 just like at Starbucks. That’s a fat gain already. Plus if they can fix issues and drive to 110 even more. Imagine 27 dollars times 3 million shares. That’s why he’s here.
Who knows how long he’ll hold. At a value proposition - Nike’s valuation is looking attractive for a pop in the next 6 to 9 months. The selling pressure has exhausted around ~70 which is where an area of support is for Nike.
This means, we have enough people in our corner who will buy up shares for people who are selling at 70. This doesn’t mean a bullish undertone but enough to say we aren’t free falling anymore for the time being.
I’d say this opportunity is similar to the 2017 moment in time, but like then, it was a similar to a spite against the prior LT (not Parker as much as the other executives).