Okay, so everyone is weighing on the Tiger Woods incident over the holiday weekend. As a "business of sports blogger," it's my turn to toss in my two cents. First things first, whatever you think happened early on Friday morning, Tiger has asked for privacy and respect, so I will not participate in the rumor-mongering taking place across the Internet.
What is interesting is that people are forgetting to look at what this could do for his biggest sponsor, Nike (NKE). Now, I am not saying that any stock trouble that Nike may experience is the fault of the little incident between (or involving) Tiger and Mrs. Tiger, but the company will be performing a bit of damage control, just as Tiger and crew have.
When the face of a company gets in trouble, the company may falter; but there is the feeling that it has to say something either in support or against what its athlete did or didn't do. Await comments from NKE soon, of course, it took them a while to say much about Michael Vick, and I am pretty sure that Tiger won't get the same public treatment as Vick.
Technically, NKE is performing well, riding a nearly year-long wave of momentum higher. The stock is currently battling a bit of resistance in the $67 region, which has provided resistance in the past. If the athletic apparel firm can have a solid holiday season, it could very well put the $67 region in its rear-view mirror. Such a move would allow this region to act as support if needed, as prior levels of resistance can flip roles when given the chance.
Furthermore, NKE's 10-week moving average is in position to provide support if needed, as it has performed this role in the past 11 weeks and throughout a majority of 2009. As for potential resistance, the $67 region is just about it -- as NKE would then mount an assault on all-time high territory. In early 2008, shares of NKE were able to touch a high slightly north of the $70 level; so a jump to the $70 region is not out of the question.
If NKE falls short of its all-time high, let's make sure that we blame it on resistance or poor sales -- not on the foibles of the Woods family.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
11-30-2009 @ 1:51PM
Beltway Greg said...
Kudos to Tiger's next door neighbor who showed remarkable restraint by not blabbing his name all over the scanner. Of course, it's all downhill from here. Even TechTicker's Henry Blodgett, he of banned for life from the security industry, managed to offer his adroit analysis. Really, this is a personal matter. No booze, no drugs, the glass has been cleaned-up so leave Tiger and his wife alone to sort out whatever difficulties they're experiencing. Besides, maybe the good boy needed an edge and judging from your choice of stock photo few folks will miss the swoosh. My bet? Sales actually increase.
Now what I really want to know about is the relationship between Henry Blodgett and Aaron Task on Yahoo's TechTicker. I heard they had a horrible slap down the other day at Starbucks in mid-town Manhattan. Evidently Aaron deleted Henry's Miley Cyrus' tunes from his IPod and replaced them with Taylor Swift's vocal stylings. Offense was taken; gifts will be returned.