Ticker Talk: KORS
2:03 PMI was reading an article the other day that said women don't invest as much as men. They are often better at managing money, but they more often than not, fail to amass any significant investments. It's with that in mind that I've come up with Ticker Talk, a monthly write up about companies or securities traded on the stock market. Instead of saving up to own that new Balenciaga, why not save up and own of a piece of its parent company, PPR, instead? You may think, "I'm only 20-something, there's plenty of time for that later," but there's really not. You will have a greater return (a.k.a. make more money) if you save from 20-30 and let it grow until retirement, as opposed to 30-40 until retirement. Who doesn't want more money? If reading this column gets just one person to start an IRA (Individual Retirement Account) or take an interest in finance, I've met my goal. So check it out and let me know what you think in the comments!!
In my short time in the finance industry I've seen some stocks plummet, others flourish, and in the case of Facebook (FB), an initial public offering (IPO) gone terribly awry. One stock I've had my eye on since day one is Michael Kors (NYSE: KORS). Since its IPO in December of last year, the company quickly garnered momentum at a time when others are struggling.
With its IPO garnering $20 a share, and a current share price of $51.05 (as of 2:00PM 11/12/12) it's been performing extremely well. Michael Kors' strength lies in leather goods and accessories. Their handbags are extremely popular, and their watches are at the top of many Holiday Wish Lists (including my own. Hint, hint.) While I'm not a huge fan of Michael Kors products, I admire strong, business-minded companies and brands. He has managed to secure a place in the affordable luxury market, keeping both domestic and international customers interested, while successfully building on the growing popularity of the Michael Kors brand in China as well as other parts of the developing world.
At the end of August the finance world was buzzing about KORS' performance. The Business of Fashion highlighted the company's stellar performance as well as Forbes, boasting the impressive headline "Luxury Brand Designer Struts Its Stuff With Nearly One Hundred Percent Gain."
This company is like the Little Engine That Could-- And has. Since Heidi Klum dubbed Michael Kors "the great American designer" on Project Runway eight years ago, Michael Kors has indeed grown to fill those shoes, as well as the closets of women worldwide. Michael Kors has emerged as a strong rival to Coach, and their logo bags and ubiquitous MK logo chain can be found hanging on the arms of everyone from school teachers to celebrities.
The consensus on the fate of KORS is mixed; some speculate the stock could top $90 within 5 years (a fairly short-term investment period) while others have a more conservative outlook typical of retail stocks. I know this is one security I will certainly continue to follow.
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