I believe the price action in GILD is related to technicals, and not fundamentals. Do you really want to own a stock that is news driven?
This stock is likely to appreciate 50% in 2015...
How do you think management feels when they deliver beat and raise quarters every quarter for years, and then watch the value of the company get cut by 30%? I would be madder than a hornet if I got those results for kicking-rears and taking names.
They have taken share from the largest luxury brand in North America to the point where they are now the largest luxury brand. The management team has executed brilliantly, and for what? The stock was at the $70 level in the summer of 2013. That is one and a half years of growth that have been neglected.
KORS will earn $4.50 in 2015 and grow at 40%. That is better than UA, CMG or any other retailer that is publicly traded. The stock needs to be closer to $150 than $50… Go private
KORS has a $15 billion market cap. Nobody will buy them. It would not surprise me to see them go private though. John Idol did not want to go public originally.
KORS should be trading at $120 by now. They will earn $4.50 this year and grow at 40%. If the stock had half the multiple of CMG or UA the stock would be over $120. Management continues to deliver the goods in a tough retail environment. KORS will earn more than $1.50 in Q3 2015. But, it doesn't matter as there will always be hedge funds to knock it down… KORS is a frustrating stock manipulated by the many crooks on Wall Street.
What you see today is some small time short covering. They made their trade in KORS and will move on and the stock will trade 1-2 million shares a day for the next three months.
I made profit both times I went long in KORS. Therefore, I cannot complain..
This fool sold all shares at $73.50 today. The stock has sold off three consecutive times on beta & raise quarters. KORS is one of the most manipulated stocks I have ever seen. I would rather own AAPL, GILD, DIS, AWR, FB than this...
The stock sold off hard as the shrinking margins spooked investors. That is a red flag for growth stocks. KORS is spending a ton of money to fuel their global growth. The new website, new warehouses, and advertising is all costly.
The growth story has not changed though. KORS is still taking share from competitors. The only thing that changed is that investors were not comfortable owning KORS at $100 with reduced margins. Even though management has been transparent about that issue they sold the stock down to $70.
Now, investors are skeptical and prepared for the worst. How much will the margins shrink? How much is KORS management spending to fuel growth? Even though KORS beats EPS and revenue estimates they are not making as much profit as in the past because of their spending. How much profit ail they book this quarter in comparison to Q2 2014?
There will be plenty of questions for management to answer tomorrow on the conference call. I am glad they have finally delivered on their website as they said they would. That adds some credibility to management.
An EPS beat and raised guidance is a slam-dunk. But, the stock has sold off hard a few times with those two things going for it….
The firm has taken over its own website from Neiman-Marcus. The website is greatly improved.
I am looking forward to the conference call on how they plan to use social media to drive consumers to their website, and how much traffic the new website is bringing.
We hear too much media noise about "slower mall traffic." But, consumers are still spending, and they are doing their shopping from mobile devices. Many are shopping via social media outlets. Some shoppers like receiving packages on their doorsteps.
Michael Kors is one of the leaders in social media engagement and advertising. It will be interesting to hear what management has to say about the change in shopping patterns, and how they plan on capturing those shoppers using mobile devices.
Nobody knows how the stock will respond to a quality earnings report. The fear of another SPO is out of the way now, and that is a positive for this stock. I believe the firm is taking market share and the stock bottommed around $70! Plenty of upside for longs.
As far as the stock market...we are in a raging bull market. I do not understand the post by anvboy about a falling market. We will rally into Christmas....