Nike Gets Sandwiched China Style 🇨🇳

by | 11 Oct, 2019

Nike Gets Sandwiched China Style 

Long story short, senior basketball team official, Daryl Morey, tweeted a message of support to Hong Kongese protestors who want independence from mainland China. The Chinese government didn’t like that, but the NBA Commissioner didn’t apologize for Morey’s big mouth because having a big mouth is exactly what America is all about!

China then got even more angry and instructed its state media to stop broadcasting NBA pre-season matches on the telly. That’s a blow, but some Nike investors now fear China will instruct citizens not to buy NBA merch. All NBA wares are emblazoned with the Nike tick, and some sources claim it’s already disappearing from stores! 

Luckily, unless Houston Rockets’ Daryl Morey decides to go pro next week against the Spurs, sign a Nike sponsorship, don the gear, and run out with his team, investors shouldn’t fear. Nike’s goal is to keep the shine on being an athlete. It’s to sell you a pair of shoes to let you role play as your sporting heroes, and frankly, stars are born on the court, not off it!

Franchise stocks are the best kind of stocks, so let Nike be exhibit A. Its precious competitive position means that while rivals are forced to mark down their prices during a recession, Nike isn’t. Its margins stay relatively roomy as hard-earned competitive advantages carry it through, and that makes it a compounding machine for investors. For a 40-year old company, it looks good for its age! It won’t punish the investor who pays a little too much for it.

Nike’s stock pulled back in recoil from the Chinese blast of controversy, but perhaps that gives investors a free throw? Never underestimate China, though. Not even in pre-season!

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