KORS is doing huge business in canada, and their management team has been opening up stores like crazy since the start of 2014. This will be another blowout quarter for KORS. We are looking at $3.20 in 2014 which will be confirmed in May, and $5 next year.
So far, in 2014 it appears that growth stocks are outperforming. The stock market is rewarding growth stocks, especially those with excessive short interest. If you look at TSLA, NFLX, UA, CMG, GILD, FB, KORS, FEYE, PANW, REGN....these stocks are seeing some excellent gains as they have revenue growth.
The share repurchase programs and dividend stocks are just a cash hoard without true organic growth. These stocks have been underperforming.
KORS will trade between $120 and $160 this year. KORS is a buy right here if you want a 20% to 60% return. I am staying long until the story changes.
The shorts are trapped at these levels, and many are $20 or more under water. That must be painful...
This little rally is lacking volume, and that tells me there is no conviction with this move. It would not surprise me to see KORS slip back under $99 before the end of the week. It looks like black box trading to me. There are no real big buyers and few sellers.
Their best selling items for the quarter ending January 31 were handbags and accessories! Is anyone surprised?The CFO, Karen M. Hoguet admitted Macy's has become spoiled by their strong watch sales, and fragrances has been picking up.
She also mentioned Michael Kors as an example of a vendor who is working more closely with Macy's inside their stores with success.
Macy's blamed the weather for a slow January, and I find that weak. One thing I know: women and men will shop rain, sleet or snow. It is real easy online, and exciting to find a package at the doorstep.
Michael Kors will not use weather as an excuse. They do not need an excuse.
KORS is killing it on social media. Instagram, Twitter, Pinterest, Facebook, they are everywhere. The great think about the Facebook likes is two clicks of a mouse button and you can buy a watch, shoes, glasses, fragrance, or any other product Michael Kors sells on the website.
Joh Idol said their E-commerce site will be up and running in August 2014 in USA, and later on in Canada. They will launch in Europe afterwards. Perhaps late this year or early next year. Tis will increase their already gaudy margins, and ail add up to 10% or more of all revenue. The Neiman-Marcus site is still doing quite well for Michael Kors, but it does come with a price.
Macy's used the excuse of cold weather, and I do not see KORS doing that.
$5 in earnings using the current multiple makes it a $110 stock post split, or $220 pre split. Which makes CELG under valued.
Why are you being such a wise guy?
CELG will split their stock 2 for 1 this summer. Expect the shares outstanding to increase to 812 million from 406 million. CELG is expected to earn $10 in 2015 which will be $5 post split.
Don't get me started on the Under Armour vs. KORS comparison. KORS has twice the growth with half the multiple. KORS has margins UA can only dream of. KORS is trading 19 times forward earnings, and is more of a value stock than a growth stock. KORS fair value right now is about $180 as it has $3.20 in earnings with a 60% growth rate.
There are many biotechs at all time highs, and CELG is trading below its 10 week like. I believe this is a buying opportunity. But, I am curious why CELG is lagging as it was once a leader?
It would not surprise me if $99.74 is the high until the May EPS report. The shorts will try to attack this thing and get it down so they can cover. Slow mall traffic, cold weather, discounts...blah, blah, blah...
KORS has seen a tight trading range the last two weeks with light volume... The buyers and sellers are drying up as it consolidates after the big run. If it holds $98 on light volume again this week, then I become more bullish short term.
I did some retail therapy this weekend...