In the handbag wars, “ Mad Money ” host Jim Cramer considers Coach and Michael Kors two very strong contenders.
But ask him to pick a winner, and the answer is a nuanced one.
“I’d say right now, as in today, it’s Coach. But a week or two from now, Kors will most likely be the better opportunity,” he said Friday. “Why? The difference is all about price.”
Kors, Cramer noted, has had a great growth story, as well as a lot more risk.
The lock-up period, during which Kors insiders are prevented from selling their stock, expires June 20. That, Cramer said, spooks investors because it’s possible that insiders will be able to unload shares that are up 88 percent from the initial public offering six months ago .
Insiders own 52 percent of the company, by the way.
“That makes Michael Kors way too dangerous to own right now,” he said. “But it could also create an incredible opportunity to buy this stock at a discount if it sells off over the next week or two.”
Michael Kors reported a a strong quarter Tuesday, a 5-cent earnings beat off a 16-cent basis, with same-store sales rising an astonishing 36.1 percent.
Those numbers boosted the stock 7.6 percent that day, pulling back to the pre-earnings level since then.Page 1 of 3 | Next Page