I am not a fan of most of the articles written and published by motely fool analyst but this article written by Andre Marder is worth reading. He presents what can be viewed as reasons for disconfort owning or buying Kors stock. The bottom line is Kors must come out and say or do something that reinforces their commitment to shareholders given that the person that the company is named after has reduced his holdings in the company so rapidly since the IPO. He now owns only 2.4% (initally 11%) of the company making it appear like his commitment was to cash out rather than retain a stronger ownership position in the company. I still believe we will see a stock offering in the near term to fund growth and this also weighs on the stock. I for one am very disappointed in the manner in which Kors management, and the board, handled this last earnings report, the SPO and the lack of concern these actions would have on the shareholders. I will hold for now, but given the strength of the market, holding seems like keeping your money in a money market fund waiting for interest rates to rise. Very disappointed shareholder.
Few reatil investors can disagree with you anvboy. There seems like a constant mad rush to sell out at any price despite the consequences. I also own CELG, a very good stock heading in the righ direction & shareholder friendly, but there is something about KORS, maybe by far best of breed that regardless of all the massive insider selling I am drawn to this stock & willing to hold. Still feel we will see 80 within 6 months barring nothing crazy or another spo, lol.
Buy CELG as their CEO just bought a ton of shares! Or, buy IBM as they are reverent to their shareholders as they buy back stock, increase dividends, and fire people to ensure they make the EPS numbers and have provided double digit growth since the economic downturn of 2008!
There is too much speculation in the MF article. KORS is up 14% this year, and is outperforming the market even with the SPO! He does have a point that retail investors have a right to be angry about the massive insider selling. There is an easy answer; sell the stock and buy CELG!
I agree with the comment too much speculation in Kors right now, but I still like the position the company is in right now, just as noted do not like this last set of events. I was in CELG March of 2012 and had to bail last February, so it was very good to me. I have been in IBM for a long time and have several associates that made a killing over the many years of their accumulation. Do you think Kors will make a stock offering to fund their growth? You know they did that after the Previous quarter earnings. That would be to next stumbling point for longs.