michael kors backpack
Uncategorized / April 15, 2017

I started to accumulate some shares of Kate Spade when I read the company was trying to sell itself, after strong pressure from activist hedge fund Caerus Investors.The stock has been on my watchlist for a while and I was tempted to buy even before the announcement. I didn’t buy because I was heavily exposed to the fashion industry and I was already holding Michael Kors. I didn’t want too many “handbag stocks” in my portfolio. When I read the news that the company wants to sell itself, I understood there was a good reason to buy the stock. I thought the probability of a takeover was high, as the company has significant growth potential under a financially strong and geographically diversified group. As I explained in my article “Is Kate Spade a Good Takeover Target?”, a well-informed company could foresee the possibility to create significant cost synergies and facilitate the access to good growth options outside North America. In that article, I also highlighted some financial characteristics that make KATE an attractive takeover target, such as a clean capital structure and a strong balance sheet.At the close of New York’s fashion week, Michael Kors is the most buzzed-about brand,…