We have less than two weeks left in our original target holding period for Michael Kors, which closed above $50 as recently as December 8^th but has since dropped below $43. Not that long ago KORS soared on buyout rumors emanating from Europe, but economic headwinds in the luxury apparel space seem to have put the kibosh on a potential deal.

However, just last week a story surfaced that KORS competitor Kate Spade may be getting acquired, with KORS identified as one of the potential buyers. That may be good news in the long run (if true), but doesn’t help our thesis for trading the stock since such a transaction would most likely be dilutive to earnings in the near-term.

But if KORS is not the buyer, then this development may push it back into the spotlight as an acquisition candidate if the Kate Spade deal falls through. Of course, it’s unlikely we will know more about that by the time our target hold period expires on January 13^th, so I will wait until then to decide if we are closing this position out altogether or extending it to see how this luxury soap opera plays out.