John123
0
All posts from John123
John123 in Gainers & Losers,

Michael Kors Holdings surged 5% on $10 bln bid

Handbag maker's shares KORS closed up 5.43% at $50.10

Company studying buyout offer of $10 bln, or about $55.50/shr, made last week - Spanish news website Intereconomia 

Company has reported a drop in comparable sales in five of last six quarters, hurt by falling mall traffic and a strong dollar discouraging tourist spending

The number of shares of the company being traded had spiked on Tuesday

 Kors trades at 10.2x 12-month earnings, much below rivals Coach Inc's 15.6x and Kate Spade & Co's 20.4x

imho, The offer is too low, KORS should reject it. And btw, it might be a good medium term deal to buy KORS right now.