This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's Mad Dash: Michael Kors Selloff Is Worrisome

NEW YORK (TheStreet) -- Shares of Michael Kors (KORS - Get Report) are down more than 4% midmorning Friday following news that a major shareholder, private-equity firm Sportswear Holdings, is selling its stake in the fashion retailer.

Sportswear Holdings plans to sell 11.6 million shares for $76.75 a share in a secondary offering.

On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said the selloff only adds to the recent pain of Kors shareholders. 

Read More: 10 Stocks Carl Icahn Loves in 2014

The stock peaked near $100 just a few a months ago and has declined precipitously ever since. "I am a little nervous," Cramer said, noting that two members of the Kors board who represented Sportwear Holdings have resigned.

Turning to El Pollo Loco (LOCO) , Cramer said the company reported a "good quarter" and raised guidance, but Cramer added that he would consider taking profits between now and the company's next earnings report.

Read More: Why Michael Kors Stock Is Down in After-Hours Trading

He concluded that he still likes Chipotle Mexican Grill (CMG) and Jack In The Box (JACK)

At the time of publication, Cramer's Action Alerts PLUS had no positions in stocks mentioned.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
KORS $63.25 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs