Friday, January 9, 2015

Stock bought January 2015: Adidas


Adidas, a German sports brand company

As I mentioned in the report concerning Stocks of Interest: January 2015 I found Adidas to be of interest due to that they have since the World Cup ended been traded at a reasonable P/E value for a sports brands company.

They very recently arrived with a statement (in October) of share buy-back program concerning 1.5 billion € which at this share price would be around 10% of the shares. I like when companies buy back their shares since it is a tax free gain for me.

There was also a statement concerning how many German national team football jerseys they had sold which was up above 3 million pieces (sale price is around 80 €) due to the fourth star needed now after Germany's win and I believe many people will keep buying those jerseys up until at least the European Cup next summer. So the impact during the world cup was small and to the disappointment of the shareholders but this due to the German victory there came a nice follow-up.

This time I forced myself to take a closer look on the management and especially the CEO, Herbert Hainer, to see if I could dig up something bad. I did not find something really bad but there were a couple of things...



Back in 1999-2001 Mr. Hainer was part of trying to get Salomon running and for Adidas to break into the ski sports. He failed obviously and even decided as CEO of the Adidas group in 2005 to sell Salomon to the Finnish Amer Sports and for the Adidas Group to instead put even bigger focus on the Golf segment. Today the Golf segment is going seriously bad and Amer Sport and Salomon is doing excellent business.

So my worry with Mr. Hainer is that his vision of the future is maybe not the best or better put that his timing is not as excellent as one would have hoped it to be. On the other hand things go up and down and when China, Russia and India start playing golf like crazy then hopefully Adidas will be there to make the sales.

I unfortunately did not get the best price ever for the shares... but I bought 35 shares and I spent 1978.15 € for those including fees which means that I paid 56.52 € per share.

To find out more about Adidas please see analysis of Adidas 2014 (since then the share price has decreased by over -30%), to take a look at my current Stock Portfolio then please click on that link. The portfolio will however not be fully updated until the end of the month.

3 comments:

Anonymous said...

How often do Adiddas pay dividend and how much?

Fredrik von Oberhausen said...

Adidas is paying dividend once per year and the last time it was 1.5 € which then corresponded to around 40% of their earnings.

Fredrik von Oberhausen said...

I forgot to mention that it is usually being paid out in the month of May.