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Michael Kors Outperform Pick

Sources: S&P Capital IQ, Yahoo! Finance, and Motley Fool CAPS.

This Week’s Pitch:

KORS was placed on Caps at $57.57. Their growth has been exceptional. They are trading at the low end of their trading range due to their yearly new stock offering which inflates shares outstanding. Even though shares are growing very quickly they are expanding their store base quickly and the money brought in from shares will allow them to do it without taking on debt. Net income is growing fast enough, not to affect shareholders so far.

The present P/E ratio is 33.87 and although that is on the high side of 30, they have grown revenues by over 70% for the last three quarters. I think this one will do quite well in my Caps portfolio. They have no debt and over $405 million in cash.

KORS
June 12, 2012 4Q: 2012 earnings highlights:

• 4Q revenue was $379.99 million up 58.3% from $240 million
• Fiscal 2012 revenue was $1.3 billion up 61.8% from $803.34 million
• Fiscal 2012 revenue per share $6.60 per share
• 4Q earnings were $0.22 up from $0.10
• Fiscal 2012 earnings were $0.78 up from $0.40
• Diluted share count 196.855 million up from 179.2 million
• Cash flow for the year was 27.1 million down from $52.96 million
• Cash flow for the year was $27.1 million or $0.14 per share
• Trading range between June 12, 2012 and August 14, 2012 was $36.81 to $45.20: P/E ratio range was 47.19 to 57.95: PS ratio range was 5.58 to 6.85: Cash flow yield not meaningful

August 14, 2012 1Q: 2013 earnings’ highlights:

• Revenue was $414.865 million up 70.6% from $243.126 million
• TTM revenue was $1.47 billion or $7.38 per share
• Earnings were $0.34 up from $0.13
• TTM earnings were $0.99
• Diluted share count 199.39 million
• Cash flow for the quarter was $41.2 million up from $36.8 million
• TTM cash flow was $31.5 million or $0.16
• Trading range between August 14, 2012 and November 13, 2012 was $47.15 to $58.62: P/E ratio range was 47.63 to 59.22: PS ratio range was 6.39 to 7.94 cash flow yield not meaningful

November 13, 2012 2Q: 2013 earnings’ highlights:

• Revenue was $532.935 million up 74.4% from $305.532 million
• TTM revenue was $1.7 billion or $8.48 per share
• Earnings were $0.49 up from $0.22
• TTM earnings were $1.26
• Diluted share count 200.192 million
• Cash flow for six months …read more
  Source: FULL ARTICLE at DailyFinance