Just a short while ago, Adam Scott secured the first ever Master’s title for Australia. The Masters is arguably one of the most important golf tournaments of the year and has been deemed by many to be the most prestigious sporting event you could possibly attend – even beating out the Super Bowl. Similar to the Super Bowl, sponsors and advertisers pay a great deal of money to get their name shown during the event.
That leads me to today’s stock pick – Nike (NKE). Wait a minute…Adam Scott was not wearing Nike. Throughout the tournament, he was seen showing off the Mercedes Benz logo on his shirt paired with a Titleist visor. However; these two companies are difficult to invest in here in the US.
Why Not Mercedes or Titleist?
Fortune Brands Inc. used to own the name Titleist, but the golf brand was sold to Korean investors in 2011. Mercedes’s parent company, Daimler AG, can be purchased on the German exchange under the symbol DAI. The stock also has a Pink Sheet equivalent (DDAIF), but the volume is very low and the bid/ask spread is too large in my opinion.
This is the brand worn by the number one player heading into the tournament – Tiger Woods. Had Tiger taken home the green jacket, Nike would have experienced a nice bump this week, but we will probably see a minor sell off now. Woods and the Masters are a very small portion of Nike’s business, but they put a lot of money into the effort and Tiger’s loss will not help the stock price.
The short-term technicals further back up the fact that Nike is due for a small sell-off. Looking at a one month chart, the slow stochastics have crossed at an overbought level. I’d expect Nike to close lower for the week, perhaps dropping to the $58 range. I wouldn’t expect to fall much lower than that though. Technicals will become very important at that level to determine if a support point is reached.