Michael Kors (NYSE:KORS) has spent much of the time since its IPO in late 2011 moving in a choppy sideways fashion. Then a gap occurs, the stock moves up and a new choppy range develops. Whether this pattern repeats is yet to be seen. If the pattern continues, and the stock begins to move in a lateral channel once again, upside is limited based on the current price. The jump of nearly 9% on Feb. 12 likely exhausted much of the buying that is likely to be placed. It is also noteworthy that intraday the stock was up more than 13.5% from the prior close, and sold into the closing bell indicating that buying interest was already waning. Overall, the stock is in an uptrend and I see no reason to run from it now. Picking it up here is a bit pricey for me though, but between $58 and $54 I like it a bit more, with a stop in the $50 range. With that said, while this gap up could be the start of a strong wave higher in the stock, I think there are other plays out there, with a more defined trend, that warrant investment before Michael Kors.
"there are other plays out there, with a more defined trend, that warrant investment before Michael Kors."
Jeff which others are you looking at? Are you talking about the high end retailers still?
Firsyt off these are comments by Investopedia, I just thought they rang true after earnings. Did he know there was going to be another another SPO to justify the retracement under $60? I doubt it but management has been 3 for 3 in the last quarters. I believe, along with many other posters, that this would be over $70 by now if not for the SPO's. That being said, all the fundamental, technical and positive analysis results don't really move this one way or another in the short term. It is a longer term play with huge potential. If no SPO is announced after next earnings MAYBE this will gain some real traction and respect.
In terms of short term retail plays,COH, LULU, FOSL are always on my radar and some move more than most, with COH being "oversold" and rebounding lately. I still think KORS is better postioned than COH but if quick money is what you want COH may be a better day to swing trade. KORS is more of a core long term position.
I've sold my postions in KORS numerous times after new highs have been hit only to buy slowly as it retraces. Presently holding 2,000 shares at 61.30. My timing isnt the greatest but patience has paid off. Just don't expect this to go staight up until they exhaust all the SPO shares.
very faulty logic -- its borders on total amateurism -- i have read your previous posts
non made any sense --bottomline is we have 5 strong quarters but the two quarters were unbelievable
if thing touch touches below 60 i will doubly my position - in a heart beat
Do these people actually think this stock will fall to the mid 50"s?
Unless there is a collapse in the entire market in general or maybe 3 days after a thermal nuculear war, I don't see this at all, IMO.
Sentiment: Strong Buy