A few technical traders I am in contact with have KORS on their radar after the consolidation KORS has seen the past five weeks. Could the technical traders start to move the stock this week? If the market behaves, I could see KORS moving higher, after the rebound on Friday...
KORS is now five weeks tight, and getting tighter. Williams Sonoma and ULTA Salon reported blowout earnings this week. Some retailers are thriving and others are not. KORS is in the thriving category...
I am long from $52, and do not trade or short. If it drops to the 10 week line at $90, then I will add. But, KORS has been getting support at the 20 DMA, and I suspect that will continue, until it doesn't. Looking at the chart it is lower left to upper right, and I will stick with that trend.
KORS traded negative the first four days this week. But, today it erased most of its losses with a gain of $1.10 on the highest volume this week to close the week down by sixteen cents. This stock is trading tighter than a gnat's #$%$. KORS have formed a five weeks tight trading pattern with a buy point of $101.14.
Congratulations on your trade! You made money and that is the objective. This stock always gives people a chance to get in long, or trade. I do not trade, and believe the big money is holding winning stocks in a bull market for a long period of time.
I will not sell KORS until the story changes, and I do not see that happening...YET!
KORS has traded negative for six consecutive sessions. The stock has never done this before even after their three SPO's. The stock is 4% off its high and remains in a tight trading range in extremely light volume.
It is just a matter of time before KORS trades over $120. As of the May report they will have earned $3.20 for 2014, and guide to $4 or more for 2015. $4 in earnings for a stock growing at a 60% clip. That is ridiculously cheap!
WSM (Williams Sonoma) just reported a huge EPS number and increased their dividend. Retail is not dead. There are just way too many retailers and KORS gets dragged into the muck when the losers report. Another big quarter is looming in May...
Down to 7 million. It looks like the folks who shorted as KORS entered the S&P 500 as a hedge have mostly covered. The short interest has been reduced from 12 million to 7 million in less than 3 months...
Date Short Interest Avg. Daily Volume Days to Cover
2/28/2014 7,263,823 1,867,689 3.889204
The bull market is now 5 years old, and history tells us this will be the last year of gains before the bear sets in. I get concerned when I see junk stocks with little or no earnings going parabolic. We are seeing that now with BLDP, PLUG and FCEL. These stocks are soaring, and the quality stocks are selling off. This is definitely something to keep an eye on. We need to see the leaders lead, and let the laggards lag this market.
KORS management raise estimates for the year to $3.07-$3.09! However, the analysts estimates have been rising and are now at $3.12! Using the current multiple of 33.5 KORS would be trading at $104.50! KORS will crush even the raised analyst estimates and deliver $3.20 for fiscal 2014! Using the current multiple (which is pitifully low) of 33.5 KORS will trade at $107.50 in May.
KORS will raise fiscal 2015 guidance to at least $4 from the current $3.82! Using the current multiple the stock will trade at $134! We have one more year of beat and raise quarters as the estimates for 2015 are way too low. KORS has opened up so may stores in the past two years that they can absorb "slower" same store sales and still crush estimates.
IBD has an article on KORS this weekend titled: KORS:No Signs of Slowing Growth
It explains KORS performance over the past five years, and the fact that management never uses excuses like cold weather or discounting. They just execute and perform.
KORS has formed a 4 weeks tight pattern and is #19 on IBD list of top 50 stocks
A three-weeks-tight pattern can be a great opportunity to add shares to a current holding. This pattern, best viewed on a weekly chart, is established when a stock closes narrowly three weeks in a row. In three-weeks-tight, the close of week two is within 1% of week one's close; and the close of week three is within 1% of week two's close.
Even if the weekly price ranges aren't small, the narrow difference between each week's closing price is what matters.
The buy point is the high in the pattern plus 10 cents. It must clear this high in fast trade to make the buy point legitimate. Even if a stock displaying this pattern doesn't trigger the buy point, a three-weeks-tight can be seen as a sign of strength within a base. Often top-quality consolidations show tight trading.
This pattern tends to work best with the market's top leaders: Those stocks with excellent fundamentals and price action.
KORS has formed a four weeks tight chart pattern since a huge gap up after their EPS report. This is typically a bullish pattern with a good chance for upside as investors are comfortable holding the stock at these levels.
I wish that pictures would post here...the store looks fantastic...
Michael Kors flagship aglitter in Shanghai
Michael Kors has just opened a Chinese flagship store in the Jing An Kerry Centre in Shanghai. Covering an area of 560 square meters, it is the brand's largest store in China, featuring an innovative façade concept.
The two-story shimmering facade on Michale Kor's flagship in Shanghai. Photo DR
The store also launched a pioneering concept never before tested elsewhere in the world. The ground floor of the Shanghai flagship offers a selection of ready-to-wear clothing and accessories for men as well as a women's shoes salon. The new shoe section groups together footwear from the upscale Michael Kors Collection and its secondary line Michael Michael Kors. "I’m thrilled to be opening a flagship in Shanghai,” said Michael Kors. “It’s an incredible store for an incredible city. We wanted to design something that is sophisticated, glamorous, and modern a fabulous shopping environment for the stylish, fashion-forward Chinese customer."
Company CEO John Idol added: "Our new flagship at Jing An Kerry Centre is not only the largest Michael Kors store in China but it also features an innovative, dynamic façade design that highlights the significance of this store." This facade shimmers in light, a nod to one of the brand's signuture styles, the frequent use of metallic colors, especially silver..
This looks like machine trading. Bulls & bears battling it out at low volume. Longer term, anyone buying under $100 will make 50% returns this year....
I believe that eventually this will even out a bit. KORS will see multiple expansion and UA may contract a bit? KORS is blowing away UA by any financial metric you can measure. It has only been one year since the last SPO so there may be some catching up to do? The UA management team is more shareholder friendly than KORS. But, the numbers KORS is delivering cannot be denied!