I’ll admit right off the bat that I don’t know much about fashion, especially when it comes to the type of women’s apparel and accessories sold by Michael Kors (KORS). But I do know an attractively priced stock when I see one, and apparently so do a lot of other people who bid up its share price nearly 10% in the days after we added it to our portfolio.

In this case the excitement stems not from a recent quarterly earnings report – the company is scheduled to release its third quarter earnings next week – but from takeover rumors that have the company being bought out by an as-yet-unidentified suitor at a specified price of $10 billion, which would work out to approximately $59 per share.

I’m usually suspicious of buyout rumors that identify neither the proposed buyer nor the source of the rumor, as too often they tend to be planted by speculators hoping to profit in the short term before the rumor is dispelled.  In this case the market seems split on whether to believe it, since the estimated purchase price would imply another 20% of upside in the stock.