Short
Michael Kors -KORS -Daily -Sell Rally to 84-85, 82.2 last
Ramping higher every quarter until the recent selloff into the latest earnings report. Note how well the "Key Hidden Levels" defined the bottom of the range in the recent decline!
The stair-step climb to ever higher levels is interrupted now, but I don't want to miss shorting it at $84-$85 for a return to $76-$77 for a low risk, high reward trade.
The valuation of KORS is extremely high and is based on their strong sales growth and profitability over their lifecycle. However, if you had to purchase the company outright here, then you would likely never earn your money back from owning/operating the company. At almost 5 times sales, you have to pay $5 for every $1 in sales that the company generates. I think in the long run, the odds are stacked against the stock doing well. I'm not saying it wont do well, just that I think the odds are better that KORS will be neutral to lower and the way to trade it from here is from the short side.
Sell over 84-85, target 78-76. Risk 3 pts to profit 6-9 pts.
Tim 11:54AM EST 82.23 last, but wait for 84-85 entry zone.
***"Key Hidden Levels - Earnings" is a subscription based script available at "Indicators -> Marketplace Add-Ons -> Key Hidden Levels. Monthly and Annual Subscriptions
The stair-step climb to ever higher levels is interrupted now, but I don't want to miss shorting it at $84-$85 for a return to $76-$77 for a low risk, high reward trade.
The valuation of KORS is extremely high and is based on their strong sales growth and profitability over their lifecycle. However, if you had to purchase the company outright here, then you would likely never earn your money back from owning/operating the company. At almost 5 times sales, you have to pay $5 for every $1 in sales that the company generates. I think in the long run, the odds are stacked against the stock doing well. I'm not saying it wont do well, just that I think the odds are better that KORS will be neutral to lower and the way to trade it from here is from the short side.
Sell over 84-85, target 78-76. Risk 3 pts to profit 6-9 pts.
Tim 11:54AM EST 82.23 last, but wait for 84-85 entry zone.
***"Key Hidden Levels - Earnings" is a subscription based script available at "Indicators -> Marketplace Add-Ons -> Key Hidden Levels. Monthly and Annual Subscriptions
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