Quote Originally Posted by davidallison@shaw.ca View Post
Mike,

Thanks for the update. I would also be interested in what you think of the secondary offering in relation to what is happening to short term price on KORS.

Thanks,
Dave
Dave, the secondary offering is large, increasing the float by 25% while breaking the IPO lockup agreement. The current model stock of a similar circumstance is INVN. INVN also broke the lockup agreement and increased the float by 25%. It probably caused the pullback to the 50-day moving average. I don't expect the price to drop to the 50-day in the case of KORS as the secondary offering price is $27. It took three weeks for INVN to shake off the increase in float so that would be my estimate for KORS also. If the market is still acting strong when KORS shakes off the effects of the avalanche of tradable shares I hope for a break to a new high.

I am reminded that the market has been rallying for a long time and all rallies end eventually...