Last night, the Boston Celtics sealed the deal and topped the Cleveland Cavs to advance to the 2010 NBA Semi-Finals. Will King James finally head to the Knicks to become King of New York?
In May of 2009, a group of Chinese investors led by Jian-hua ‘Kenny’ Huang purchased a 15% stake in the Cleveland Cavaliers in hopes to establish the presence of King James for the long-term. Kenny Huang was the first college graduate from the People’s Republic of China to work at the New York Stock Exchange (NYSE:NYX). He is a founder and director of Sportscorp China, a group that bridges the sports and sponsorship industries between the United States and China.
Surely, Chinese fans have continued the cheers from abroad for James, but in his last home game of the 2010 NBA Playoffs, his disappointed hometown Cavs fans boo-ed their King off the court.
Earlier this year, LeBron James signed a blockbuster endorsement deal with McDonald’s (NYSE:MCD). With MCD trading at $70 per share, I’d look for a pullback first before jumping on board the King James McDonald’s train:
Back in May 2003, LeBron signed a seven-year, $93 million contract with powerhouse Nike (NYSE:NKE). He recently re-upped his contract with Nike this year, but deal terms were not disclosed. We can only assume the terms were very comparable or better than his prior deal given the growth of the King James stocks since then. As NKE shares have breached their 200-day moving price average today, I would suggest remaining cautious but looking at the technical range of $68-$70 as a safer place to play ball with LeBron.
China has been the sleeping giant that has awoken since their Olympics hosting. But with King James on the fence and the Cavs’ Chinese stake, will the luster for China fade as global eyes are set on the Brazilian World Cup and Olympics hosting in the New Decade?
The King James Trade Takeaway: Pullbacks are buying opportunities for MCD and NKE, while China’s FXI could enter a chop zone of concern for LeBron’s next possible move.
Shortly after U.S. markets opened, the University of Michigan‘s consumer sentiment survey revealed the printing presses are still yielding sustained U.S. consumer sentiment spending over rioting. Now, lets’ see if the latest European stimulus package can draw the same result from the U.S. playbook…