There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

August 11, 2008 - Nike, Inc. (NKE-NYSE) designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and children's shoes. It also provides shoes for aquatic activities, baseball, bicycling, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses.

Additionally, it offers licenses to produce and sell NIKE brand swimwear, team sports apparel, training equipment, children's clothing, electronic devices, eyewear, golf accessories, and belts. Nike, Inc. also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, John Varvatos, Jack Purcell, Cole Haan, Bragano, and Hurley. The company sells its products to retail accounts, through stores, independent distributors, and licensees, as well as through its Website, nikestore.com.

As of May 31, 2008, it operated 296 retail stores in the United States and 260 retail stores internationally. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

It does all of this quite profitably. Over the last 5 years, average annual earnings growth was 18.31%. In the next 5 years, analysts see average annual growth of 13.4% compared to 12% for the industry. Last year, the company reported $3.74 in earnings, this year, 8 analysts have a consensus eps of $3.91 and next year, $4.46. (Fiscal year ends May 31.) First quarter earnings will be out on September 24 (For the August quarter) and expected to be 92 cents a share. That compares to $1.12 last year in the same quarter. Next quarter the consensus from analysts is 81 cents vs 71 cents last year in the same quarter.

One reason this stock should appeal to conservative investors is the balance sheet. It's only got 5% debt. Current assets are 2.66 times current liabilities. There's cash in the bank of $2.78 billion. That's $5.66 per share. Total debt is $625 million.

Recently, the stock has taken a breather. After persistent upward moves, starting in 2002 when the stock traded at $19.30 (adjusted for a 2 for 1 split early last year), it has move ever higher, reaching an all time high of $70.60 this year. The backslide reflects investors' disappointment in the about to be announced earnings. It's been years since the company announced a lower quarter when compared to the same quarter of the previous year.

The future seems very bright. At the end of May, worlwide future orders showed an 11% gain over the same period last year. The Asia/Pacific region boosted orders by 31% while Central and South America increased by 30%. Of course, we're right in the middle of the Olympics, and the Nike Swoosh is everywhere. Internationally things look good. It's the domestic side that's a worry. Orders were flat in the U.S. on a year over year basis at the end of May.

With food and energy taking more out of each month's paycheck, cash flow for most consumers is for the basics. There's no question no one needs Nike shoes or apparel. There are plenty of other options at much lower prices. But none of those is endorsed by Michael Jordan or LeBron James.

More numbers: Market Cap is $31 billion with 387.7 million of the class B shares, the ones investors can buy. There are 105 million Class A shares which are convertible into 1 share of Class B shares for a total outstanding issue of 492.71 million shares. Revenues were $18.627 billion last year, with analysts predicting $20.13 billion this year and $22.08 billion next year. Profit margin was 10.11% in the last 12 months. Return on Equity was 25.36% for the last 12 months. Debt to equity is .08. Price to Book is 3.95. Book Value is $15.94.

Nike has a great brand name, a solid reputation, and good prospects. Emerging and developing countries offer new markets and growth. While the stock has slipped somewhat from its upward path, it should only be a temporary event unless the U.S. economy gets much worse, though the U.S. footwear market is only 23% of total sales. Dig deeper into this fashion icon if you're considering the shoe industry. It's so much more than that.

- Company Web site: www.NikeBiz.com

- Ted Allrich