Tapestry Inc. (TPR)

(Market Call Minute) Spends lots of marketing dollars and trades cheap relative to other luxury names.

Has gone through some transitions and challenging times with its stock and has moved sideways for quite some time. Purchasers are moving towards other areas. Seems a little bit cheap at this time but Michael Kors Holdings (KORS-N) is where the momentum is.

A great company but they are having some executive departures. Great balance sheet and margins are good but in the short term there is lumpiness with management changes and more competition. The last quarterly results released were not on fire where usually they can have some pretty strong numbers. It’s a tough market. There are a number of competitors out there.

(A Top Pick March 20/13. Up 13.7%.)

(Market Call Minute.) There are better, more global players with a more diversified product mix.

(Top Pick Mar 31/13, Up 16.84%)

An iconic brand developed in the US that has been around for over 50 years. Sold off very hard recently because it didn’t perform very well over the last two quarters. He believes that a couple of quarters of subpar performance doesn’t mean that the game is over. What you have is a high luxury brand trading at a discount multiple on numbers that he believes are extremely low. Gaining traction with consumers in Asia. Dividend yield of 2.45%.

Looks like a value stock at this point. Stock hasn’t done that well. Sold his holdings last year because technicals were not looking so great. Thinks they are in a transition phase at this point and are looking at refocusing on fragrances, watches, etc. They might be losing ground to some of their competitors. Cheap. Would prefer Kors Holdings (KORS-N).

It was moving in a sideways trend. It has recently broken down from a support level in the $52 range. The break below is a fairly bearish signal.

Huge play in China. China produces over 230,000 new Millionaires every year. High end products are doing very well.

Reported some decent numbers, but unfortunately they got dinged for not making it in North America numbers. Most of their profit came from Asia and Europe. Valuation had also got extended and it is not a cheap stock.

It over sold a bit, but not a lot. Around the $50 range there is a lot of support. We have a big topping process. If it hung around here, he may want to look at it as a punt. If it goes a lot lower then it is a broken name. It is high end discretionary and some say it is getting tired.

(A Top Pick Nov 24/11. Down 0.71%.) Sold his holdings in August when it hit his stop loss and it looked like China was slowing down quite a bit. Likes it longer-term, but in the near-term it is trading below the 200 day moving average. Just announced a share purchase plan which is good. Long-term growth you are looking at about 13%. Forward price earnings is around 13-14.