In a market day as rainy as the weather up here in Montreal, KORS seems to be standing out.

 

After beating earnings estimates (+138% EPS). Retails sales are up 59% and gross margins increased 2%. ROE seems to be 53%. EPS has accelerated last three quarters (96%, 129%, 138%). Guidance was a disappointment however.

 

KORS has been plagued by public offerings near each breakout but this time, it doesn't seem to be happening as it finally showed conviction in breaking out today despite the bad market day. Volume was well over 1000% (385% as of now) this morning which usually is a good sign it will beat the 40% necessary for a solid breakout at the end of the day. Some people like to wait until near the end of the day to buy once more volume info is available. I like to be more active and project volume based on current % above average as stated in IBD. If you see 4 digit volume percent increases, you're pretty much OK to dive in.

 

This stock survived 80% of my checklist which is good enough for me. Where it failed is RS >= 80 and U/D >= 1.1. Let's see if the resistance at 65.10 is a threat.

 

Alright, lunchtime is over on the east coast. Back to my real job!

 

Cheers,

Mike