I have been a vocal bull on Michael Kors Holdings (KORS) since last summer. I picked Michael Kors as a top long idea for Consumer Alpha subscribers in July when there was only one buy rating among 21 analysts covering the stock. Michael Kors was a top value pick with its strong balance sheet, huge cash flow generation, and low trading multiples mainly generated by temporary headwinds. The acquisition of Jimmy Choo (OTC:JYMHF) was the catalyst I was waiting for. In this article, I want to explain why I decided to take profit with KORS up 94% since I bought in July.
After the announcement of the acquisition, I wrote:
