trends can bring more profit than any other
investing activity. Yesterday's message looked at the
potential trend of a revival of Converse tennis shoes.
being a leader in tennis shoes production
dwindled into bankruptcy in 2001. Nike bought the firm in
2003 and in 2004 awarded the Sausalito California ad
agency Butler, Shine, Stern & Partners a $10 million
The agency persuaded
Converse executives to outsource ads to fans in an innovative process that
lets the public play
in an ad game. (Some call this brand democratization.) The
agency solicited 60-second films from anyone with an idea
about Converse and a camera. Seven films about Converse
came in and were put on the Internet. This opened the
floodgates and many more films flooded in.
Over 30 films
ran online and on MTV. Each filmmaker was paid $10,000, (versus $300,000-
the cost of a normal
30-second TV spot).
The agency was
able to create 81 ads at a fraction of the normal price. The Converse website
began getting hundreds
of thousands of unique visitors a month, up 40% . Converse
sales rose 12%.
is however is the Converse boom big enough to help push up the value of
A Forbes article thinks Nike is a good bet and says:
America research analyst Robert Ohmes maintained
a 'buy' rating and $110 price target on Nike (nyse: NKE -
news - people ) in anticipation of strong fiscal
second-quarter results and a positive 2006 outlook driven
by a favorable product line-up." Shares have been trading
on the $88 range so rising to $110 would be a good rise.
The market however
appears to have some concerns. A Business Week article
9:31 A.M. ET investors rushed to sell off shares
of Nike in premarket trading on Wednesday after the
company reported decent second-quarter results, but said
growth in international markets was sluggish."
never get rich taking advice you read in newspapers and magazines. We need
way Nike has been reviving Converse shows that Nike knows how to market
could especially appeal to the Boomer market which is especially large
and rich. Third, there
could be a health transformation that could give the
Converse brand a huge extra punch. Here is a snippet I ran
across in my research: "65 percent to 80 percent of all
runners - joggers and elite marathoners alike - are
injured in an average year, according to Dr. Davis. Aching
Achilles tendons, sore knees, inflamed arches and hobbling
plantar fascia pain are as common today as they were when
boot camp grunts were jogging in canvas Converse
goes on to say that recent research shows that the current "high support" running
shoes create a lazy foot syndrome which enhances injuries. It points out
minimum support (such as in Converse shoes) can be better.
If this trend catches on with runners we could see another
shares rise or not because of the Converse revival, they are worth consideration.
Plus at the least
we can see how observing our wants/desires/feelings and
actions can help us in our business and investing.
I cannot say
buy Nike shares for sure, but the All Americans have my full endorsement.
I love my new Converse
shoes! On way to improve your equity investing decisions
is through technical analysis. You may want to consider
following an investment blog.
A CNN article
entitled "Best financial blogs" says
are thousands of sites devoted to finance but lists just
10 that Forbes says "may just help you make some money".
One of the ten
blogs the article recommends focuses on CANSLIM investing and is a blog
where I am a guest author
also recommends this sight. The article explains that William O'Neil, founder
Business Daily was also the creator of a widely followed
seven-criteria investment philosophy known as CANSLIM
which stands for various fundamental and technical hurdles
like choosing Leaders over Laggard stocks. DETAILS
watch broad parameters, currency interest rates or daily technical moves
and use the CANSLIM
approach, I wish you good global investing!
P.S. Join us in sunny Ecuador this winter.
Thomas Fischer and me for International Business and Investing Made EZ
plus the Andes and learn
more about the MultiCurrency Sandwich. DETAILS
to the High Andes. For a real estate tour. DETAILS
Tour the country
with us on our import-export expedition. (Don't come if you want a "class