Well, just in case you were wondering when we would see Tiger Woods tromping down the fairway, this site has the answer. Not only do we find out Tiger will return, but the kind folks at Nike, Inc. (NYSE: NKE) let us know what he will be wearing each day of the upcoming tournament (the Accenture Match Play Championship). Golf fans know, and the Nike site quickly shows, that red is Tiger's signature Sunday color... and unfortunately it has become Nike stock's signature color as well.
Nike's struggles can't be blamed on Tiger being missing, the company has started to succumb to the economic downturn. With Nike, the stock is now below the $42.50 level, which is a multi-year low. Should this be considered a buying opportunity? I contend so, but let's not forget the cautioning of the new administration -- the current economic crisis will continue to get worse before it gets better, so purchasing any economy-sensitive stock (i.e. retailers/consumer goods) is a dicey proposition.
That said, the stock's past performance certainly suggests that we could see a rebound. For a good part of 2005 - 2006, the $40 level acted as support. With the stock wallowing in this region, we could see a bounce.
While a bounce is a possibility, there are various layers of overhead resistance for Nike to overcome -- including the stock's 10-week and 20-week moving averages.
Let's see if Nike can turn its performance around.
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