Here is my humble opinion from someone who has been here since day one. I remember being scoffed at when I predicted we will be in a tight range bound of 55-60 after the announcement of the third SPO last month. I stated this not because Im am some short term predictor guru, but I am going by the previous 2 SPO's especially the second one, which is extremly similar in many but not all ways.
There is absolutley NO catalyst to buy right now as we have seen historic highs & Goldman reiterate their conviction list & $80 price target & here we are almost 20% off the stocks highs & whats going to happen to the pps if we get this long awaited correction that is very necesarry. I would not be at all surprised to see KORS trade under 55 & perhaps an extreme case to brifly pierce under 50. Who really knows as I am just going by what happened before & it seems like things are repeating once again.
Don't get me wrong, KORS has GREAT fuindamentals & growth but as they say the market (KORS) can remain irrational longer than you can stay solvent.
I think $65 is a joke so you can imagine what I feel $55 is & I still believe there's a good chance of going lower, especially in a correcting market.
JUNE earnings as with the other 2 SPO's will be the catalyst to get us out of this range & break out. Unless we drop below 50, I am planing to buy just before earnings, I see no rush to buy here on no news.
Lastly on mgmt. This company has been private over 30 years & is extremly well run & profitable. However when private they only answered to themselves, now they are public this has not changed, whiile riunniong the company extremly well, the common shareholders got reamed 3 times in less than a year.
I am disapointed in their disregard to the shareholder & their avarice & greed at any cost.
I for one would like to see some form of stablization, Kors stock movement given the market strength does not look good to me. I have been buying on dips 55-56 but this is getting a bit old for me, I do not like my money continuing to chase what some call a falling knife. I believe this company is strong but money is moving to the retailers with questionable growth while Kors is drifting lower with very high expections. Kors is acting like Apple, which I also own, and I am running out of funds to keep building for the next move. I feel that a lot of other investors could feel the same way, and even on this board several longs are having difficulty with Kors managment and the way they disregard or have little regard for the affect their decisions have on the long share holders. I for one am very disappointed with Kors and now wish I had waited to get back into this company. Given the strong earnings, blowout earnings, their does not seem to be enough investors to want to be in Kors right now. I am not adding any more and will likely look at some protection if this does not show some signs of stabilzing.
gofaslave69, for some reason yahoo board will not let me respond to you directly another glitch in their software. The most telling aspects of Kors investors right now is the affect the last SPO had on those that might have brought into the growth story but did not like the way Michael handled his sell. Also I believe a large number willing investors considered this SPO as adding more shares. If you look at Scottrade the manner in which the Sept SPO was announced it looked like an offering of moe share not selling existing shares. Investors are a predictable breed when it comes to owners selling and why did they sell and especially the timing of their selling. With management giving nothing other than a 20% growth forecast why would one want to invest in a company selling at 35 times earnings forecasting a 20% growth rate. This stock could continue to move toward their forecast unless something is said or announced to change this perception. Kors is not trading like a great growth story right now and when you look at COH and LULU they are viewed as opportunities which I cannot see in either of these companies.
The weekly chart is telling. KORS has sold off after the three SPO's and rebounded every time. KORS has traded down four of the past five weeks trading from $65.10 down to $54.84. There are many traders ready to give up on KORS if it slices $55 (weak hands will sell) and that tells me this will happen for sure. I see one moe "wash-out" down to $52.50-$53 area before stabilizing.
Many investors are not willing to buy into the KORS growth story yet, as they have been posting "video game" numbers. But, I think the trajectory of their growth is intact, and they are where LULU was three years ago. KORS will post fabulous numbers this entire year.
If there are two sectors I will invest in this year it will be the homebuilders, who are have a strong recovery, and the luxury retail business. If you have been paying attention then you know consumers are still spending with might. KORS is the "must have" luxury brand.
When I was younger we would have to wait for the morning paper to see if IBM went up or down a point or two. Now, with electronic trading, everyone is getting instant quotes, and I believe this makes people less patient with their investments. Just a thought....