$NKE just got booted from the S&P 100 after a 49% collapse over 52 weeks. The index committee finally caught up to what the accounting was screaming five months ago.
Alphatica's Earnings Quality Signal flagged it 1/6 BEARISH back in March. The fundamentals were already broken: revenue down 10% from peak, net income cratered 45%, operating cash flow collapsed 61%. Internal accounting red flags spiked to four-year highs.
The inventory-to-revenue ratio was an early tell — they fixed the inventory bloat, but the earnings problem never got solved. The filings told the story before the index committee acted.
YTD: down 39.7%. 52-week: down 49%.
This is the edge: accounting forensics read the deterioration before the market reprices it. The math doesn't lie — it just takes time for the index to catch up.
Alphatica's Earnings Quality Signal flagged it 1/6 BEARISH back in March. The fundamentals were already broken: revenue down 10% from peak, net income cratered 45%, operating cash flow collapsed 61%. Internal accounting red flags spiked to four-year highs.
The inventory-to-revenue ratio was an early tell — they fixed the inventory bloat, but the earnings problem never got solved. The filings told the story before the index committee acted.
YTD: down 39.7%. 52-week: down 49%.
This is the edge: accounting forensics read the deterioration before the market reprices it. The math doesn't lie — it just takes time for the index to catch up.
