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Friday, January 9, 2015

Finding value

Doing a little bit more research, I'm interested in luxury retail stocks Coach (COH) and KORS.

Both have potential for growth but potential for decline as well. Both companies are expanding more internationally, which is a good sign. Kors has been doing well in 2014. However investors might want to watch their earnings. They were giving out heavy discounts over the holiday season which could bring a disappointing report this quarter. I do like how coach is cutting back on overhead costs and expanding their brands not just internationally but to men along with women. They also just bought a luxury footwear brand that should bring an immediate boost to earnings.

However, Coach is not without its flaws either. It had a brutal 2014 and is struggling in North America. Re-gaining footing in the American market will be important for this company. Both stocks are trading well off their highs so the potential for big profits is there. Again, I advise you to do your own research different people have different reactions to certain reports about stocks.

Also watching: QCOM, DLPH, CS

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