Insider Selling at Michael Kors Holdings Ltd (KORS) Hurts Investors: News Corp (NWSA), Google Inc (GOOG)

Page 1 of 2

Remember that fall that your son’s school football team made it to the state championship game? They worked so hard every day, practicing and running, with you sitting there on the sidelines cheering them on. Then they needed cash to get to the big game and you ponied up a few grand. They were so happy, they put your name on the jerseys.

Then the day came. Tickets to the sold-out game were going for $250 — this was going to be great! But you never found out, because $250 in your pocket was too hard to resist, so you sold your ticket and drank at the bar instead.

If that rings a bell, you might be the eponymous founder of Michael Kors Holdings Ltd (NYSE:KORS).

Michael Kors Holdings Ltd (NYSE:KORS)The man whose name graces the arms of celebrities and the gowns of first ladies has announced that his share of the company is going to fall even further because he could really do with another $185 million right now. After the transaction, he’s down to a mere 2.4% of the company — the company named after him. That’s down from a holding high of 11% before the company IPO in 2011. Investors aren’t happy, and there are good reasons not to be. What does Kors’ move say about the long-term prospects of his brand?

M.
I had to round up, but the letter M is a percentage representation of how much of the Michael Kors Holdings Ltd (NYSE:KORS) brand Kors owns after the sale. He owns the M in “Michael Kors Holdings Ltd (NYSE:KORS).” I wrote about this a few weeks ago, right after the announcement, but I want to go back and look at the impact that Kors’ selling has had on the stock. Since the filing after close on Feb. 19, the company’s stock has fallen 10%. That’s about $1.3 billion in market cap lopped right off the top. And that’s a loss that goes right to shareholders, and which Michael Kors Holdings Ltd (NYSE:KORS) is largely responsible for.

The problem is perception. It’s entirely possible that nothing bad is happening. Google Inc (NASDAQ:GOOG) founders Larry Page and Sergey Brin started dropping a whole bunch of shares back in 2010, but the company remained steady. Here’s an important difference, though — the sell-off left the duo with 48% of the voting rights. That means they were still heavily invested in the company, which displayed a strength of conviction in the brand to other shareholders. Michael Kors Holdings Ltd (NYSE:KORS)’ move isn’t the same thing, because he’s down to such a small part of the company that he founded.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!