KORS was up 6% ($3.04) this week, and rose on stronger volume then sold off on light volume, and that is constructive action for the stock which had been 20% ($51.63) off its high on Monday. The stock has been basing two months, and this is the first week where it appears institutions may be starting to nibble. The 10 week line ($57) now acts as resistance, and the stock has stalled there three time (April 10, 25, 26). If KORS can blow past resistance it will pick up momentum to the upside.
KORS has a lot of work to do in the coming weeks/months. However, last week's action was encouraging, even though it was down three days, and up only two. It will be interesting to see if KORS can hold the bottom at $51.63? If it can take out the resistance at $57, then it would be safe to say that a bottom is in at $51.63.
As we move closer to earnings it is apparent that KORS will post strong number based on what a number of competitors have posted in recent weeks. Most notably, COH posted better than expected numbers with their 1% YOY comp. sales in North America. Even though, Europe appears to be weakening (a region of strength for KORS) KORS is dominating in North America and that consumer appears strong. Also, KORS has opened quite a few stores this quarter, and I am curious to know if they are ahead of schedule in that department.
If KORS can just get a multiple equal to its growth rate, or in the case of COH and RL, one and a half times the growth rate this is a $150-$200 stock (no, I have not been drinking).
Another constructive week for KORS as it is up 5% for the week, and continues to build the right side of a cup within its 11 week base. I suspect some wedging action in the coming weeks, and the stock should trade $61-$65 area prior to earnings. The EPS report should be the catalyst for the stock to move higher. It would be nice to see a few more constructive weeks in this base.
It is just amazing that the market has a 57 dollar lid on this company. It is looking more and more like this will be the case until right before earnings. I noticed this morning on my Scottrade account that the Kors news has nothing to read and for some reason Scottrade only displays the February SPO details. Unless some reporting occurs that Scottrade accepts as news worthy, this reminder is always being displayed to remind all Scottrade customers that Kors ownership sold a significant amount of their shares. It is like a bad penny that just keeps reminding those that seek info on Kors using Scottrade website. Just thought this info was worth sharing with the board.
I guess I'll be the word of caution, lets not get too happy too soon! Yes we had a very good week, but last week was very bad, net for the last 2 weeks a gain of a whopping 12 cents. IMO if KORS never had any SPO's or just one normal one with the traditional 6 month waiting time we would be 80-100 on fundamentals & growth alone. I have lived (suffered) through 3 SPO's & I have seen these headfakes & false hopes before, we have never made a new high after an SPO until after earnings, I don't see why this time will be different. No positive news moved it earlier, new revenue streams, beauty, mens accesories, luggage all a big nothing. Goldman reiterating conviction buy ignored & muted.
Its all preception over reality, MGMT is telling everyone do as we say not as we do, they say thimgs are growing at a huge rate, which it is & they still sell with both hands selling at discounts using corperate funds to promote the sales & hire underwriters to dump at the remaining shareholders expense.
We are in a perminent base ONLY BECAUSE of the SPO's killing every single rally & breakout. It only takes stellar earnings & positive guidance to move this stock up as no one can understand mgmt selling over 80% of their holdings at great speed all the while saying things are great & we just begun to grow & we have lots of more room to grow.
I feel earnings will be the real catalyst & if mgmt finally stops selling perhaps KORS will finally be at fair market value & confidence will be restored.
I like your summary, it paints a picture of this month with more negatives than positives but this last week was a huge bright spot and sets up for good things going forward. It is saturday morning so I have not started my cocktails yet.