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NYSE:KORS

Michael Kors Holdings (KORS)

COMMENT

Given the power of the brand, he expects this company will be somewhat bigger in a multiyear time span compared to what it is today. However, the price you are paying for the free cash flow is very big. 31X current earnings and 24X forward earnings. One way you could have exposure to this is through Fossil (FOSL-Q), a manufacturer of watches under their own name and for others including this company.

COMMENT

Great company. Expensive but executing extremely well, winning market share from competitors. 30 times earnings. Likes that they are executing. But he likes the tailwind in the discretionary space also. As it recovers you will see continued momentum in the space. Prefers Coach and owns that.

BUY

(Market Call Minute.) Good mood today but he would still buy the stock.

DON'T BUY
Prefers Coach (COH-N). This one is new so not something he would put into his portfolios until he saw more of the annual and quarterly reports. Company has great growth but the valuation scares him.
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