1. Recommendation: Buy Nike (NKE)
Green & Gold Fund

2. Key Investment Points High-growth, significant upcoming opportunities
Unfairly discounted valuation following company turnaround
Spin off of ABC division will unlock value

3. Industry Overview Industry competitive dynamics
Are products commoditized? Monopoly? ASP going down due to competition? (Impact on profit margins)
Industry demand drivers
What causes customers to buy this company’s product?
Industry trends
What kind of shifts in demand are occurring (and what impact on top, bottom line)?
E.g. consumer preference for higher-margin green alternatives
Growth outlook
What are the key metrics of this industry?

4. Nike (NKE) Company Profile
Business profile – How does this company generate revenue?
International vs. domestic
Growth/earnings outlook
Management quality
Length of tenure doesn’t equal experience or quality
Is management shareholder friendly? Honest? Can they execute?
Competitive landscape, product positioning
Does company have a sustainable competitive advantage?

5. 3 Year Price Graph (Morningstar)
Investment Information
Prev Close:
61.03
1y Target Est:
71.40
52wk Range:
Avg Vol (3m):
3,820,250
Market Cap:
29.68B
P/E (ttm):
17.69
EPS (ttm):
3.376
Div & Yield:
0.92 (1.50%)
Forward P/E:
3 Year Price Graph (Morningstar)

6. SWOT Analysis
SWOT analysis, and how each point impacts company EPS/valuation multiple
Strengths
Uniqueness of Products
Globalization
Strive for continuous Improvement
Strong Research & Development
Weak Dollar
Weaknesses
Dependence on Demand for Products in Sales& Marketing
Foot Locker- significant Customer ( over 10%)
Futures Ordering Program
Transportation Costs
Opportunities
Competitive Advantage in sponsoring athletes
Research& Development
Trademarks
Cost Efficient Marketing
Olympic Games in China
Threats
International Operations and Trade
Competition
Dependence on Innovation
Dependence on high quality endorsers of their products

7. Investment Thesis
In one sentence, answer the question: Why should we own this stock now?
Why overweight?
Key value drivers
Potential Catalysts
Key questions
Key risks

8. Portfolio Placement / Recommendation
Sector : Consumer Discretionary
Industry Group: Retailing
Current Holdings: ZUMZ, VCR
Target Sector Allocation: 7%, $24,772
Current Sector Allocation: 2.24% , $7,927
Remaining Allocation: 4.76%, $16,845
BUY 130 shares of NKE at Market Price (approx. $8,000, 2.26% of portfolio)
Holding Period/Exit Strategy: 2-3 years, Consider selling if stock price rises above $80 or below $40 or if fundamentals change dramatically