$Nike (NKE.US)$ If revenue estimed drop 10% in next quarter ...
$Nike (NKE.US)$ If revenue estimed drop 10% in next quarter , then basically EPS in the next QR is drop 90% as it net profit margin would be eroded to 1 % from previous 10%+ ，not dip enough for the current price .
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Chow Jun Wen : Clap for your amazing math
103966930 : each qt drop 10% btw means whole year drop 40%
103566790 OP : assuming the operating cost remain the same or at least 80% the same, then the reduces in revenue will directly affect on the bottom line , correct me if I'm wrong.
103566790 OP 103966930 : 40% should be the worse case scenario, and Nike can close shop if that happen
jiecheng1314 : yes, Nike should hire u as financial manager then help Nike company valuavate their shoes price and employee salaries, u can do it?
103566790 OP : this is just a rough calculation that everyone can calculate , finance manager obviously need far more than that , no hard feelings:)
Iwanttolive : Hello tomorrow release some good PR it will rise. Your theory will not work in US market
咖波猫 : Many expert calculated Nike current intrinsic value at loss reflected should be $82 with excel sheets, I think you should present your excel calculation to back up and not just empty talk, anybody also can claim every stock is not worth what they are that’s why “trading” exist
28282828 : If you normally sell 10 apples a day making a profit of $10. If you sell 9 apple today how is it you will only make a profit of $1 . What kind of math is this
103566790 OP : Imagine you earn 100 dollar for sales of 10 apples then less the cost of sales 50 + all the other fixed expense around 40, derriving a net profit of 10 dollar .. What if assuming all the fixed cost and variable cost are same as last quarter but selling price is cheaper by 10% ? your profit will become 0. Of course ,I ignore other factors such as they can reduce the marketing cost or anything else that help increase the bottom line