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'Fast Money' Recap: Is Michael Kors Still in Fashion?

NEW YORK (TheStreet) -- After two days of selling, the S&P 500 bounced back on Monday, closing up 0.72%. 

On CNBC's "Fast Money" TV show, the trading panel took a look at Michael Kors (KORS) following its disappointing earnings report.  

Karen Finerman, president of Metropolitan Capital Advisors, said the earnings were actually pretty good. But the CEO's defensive tone has investors worried, adding, the "momentum trade" seems to be over but the business is fine. She is a buyer near $70. 

Guy Adami, managing director of stockmonster.com, said the earnings and guidance seemed pretty good. Margins slipped slightly but weren't bad. He said the business looks good and he is a buyer. 

Read More: Exclusive: Target Sizing Up Digital Deals

Tim Seymour, managing partner of Triogem Asset Management, said the comparable-store sales growth is becoming difficult to beat. While the earnings multiple is not unattractive, he argued it's hard to stay long stocks when the momentum dissipates. 

Gordon Johnson, managing director and senior research analyst at Axiom Capital Management, said second-quarter comparative sales were disappointing and margins continue to weaken. This is what is causing the selloff, he said. 

John Morris, senior retail analyst at BMO Capital Markets, has a hold rating on Michael Kors with an $80 price target. There's near-term uncertainly, he said. Investors are worried about how low margins will go. Until that question is answered the stock will remains "dead money." 

Seymour agreed that KORS appears to be dead money and added that stocks such as Delta Air lines (DAL), Facebook (FB), and Molson Coors Brewing (TAP) have all struggled as well following good earnings results. 

Finerman said investors should not buy shares of Microsoft (MSFT), based on its new deal with the National Football League. Seymour agreed, adding that investors should buy Microsoft when its valuation is low - which it is not right now. Adami reasoned that Microsoft is headed to $40. 

Read More: Follow the Money (Supply): Why Stocks Are in Trouble

Seymour argued that shares of American International Group (AIG) caused too much pain and disaster during the financial crisis. Because of that the stock will likely continue to trade at a discount to its peers, despite its strong earnings result. 

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