labsas
Since it went public in 2011 as Michael Kors, Capri Holdings (CPRI) has had a number of bull cases. During the 2010s, the stock went from a growth play immediately after its initial public offering to a value play within
Capri Holdings Is Cheap, But A Key Question Remains
Summary
- Over thirteen-plus years as a public company, the bull case for CPRI stock has taken many forms — but none have quite worked out.
- Fundamentally, the stock looks like a steal after its sale of Versace, and there is a case for triple-digit upside in a blue-sky scenario.
- But management commentary doesn't inspire, and new China tariffs raise a significant near- to mid-term threat.
- CPRI may prove to be a winner, but the history of the stock and its sector both suggest caution, even with fundamentals seemingly screaming 'buy'.
I've been contributing to Seeking Alpha and other investment websites since 2011, with a general (though far from rigid) focus on value over growth. I got my Series 7 and 63 back in 1999, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail brokerage in NYC.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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