Michael Kors Holdings (KORS), a marketer of designer apparel, accessories and footwear under the Michael Kors name, went public in December at $20 and ran sharply higher to the $50 area by mid-March where it is now forming a constructive consolidation. A break over $50 on heavy volume would trigger a buy signal.
In its latest fiscal quarter, the company reported earnings per share (eps) grew by 87% year/year and sales increased by 68% year/year. Analysts see 79% growth in eps for fiscal year 2012, giving the company a forward P/E of 69 and a PEG ratio of 0.87 — a reasonable number. I would follow any purchase with an initial stop loss in the 7% area.