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Tom's Test Tells Us If This Retail "Bargain" Is the Real Deal

retail

"Affordable luxury" giant Michael Kors Holdings Ltd. (KORS) disappointed its shareholders Tuesday morning when the company announced misses on sales and revenue then threw very cold water on its guidance heading into the spring season.

Not even a modest diluted EPS beat of $1.64 could save the famous "$300 bag" provider from tumbling 14% in a day and, in fact, leading the entire New York Stock Exchange in daily losses.

Now, on the same earnings call, corporate chiefs announced some bold plans for turning the company's fortunes around in 2017. Their vision included slashing discounts and reducing supply, which might hurt sales in the short term, but which executives feel will, long term, "build a better value" and restore their products' rapidly fading sheen of exclusivity.

Bargain stock buyers and financial pundits liked the taste of the proposed strong medicine enough to send the shares higher yesterday, calling the stock a great buy at Wednesday's prices.

CNBC Asia's "Capital Connection" asked our Options Trading Specialist Tom Gentile if there was something to the buzz, or if the shares were better left alone.

He gives us the scoop with KORS stock here, using his "Three Ms of Retail Risk" to measure if it's a true bargain buy today...

"Stock Talks with Bill Patalon" Give You Today's Best Investments

stock talks with Bill Patalon

This ongoing series of videos from one of the world's best stock pickers shows you how to grow your wealth with today's top companies.

As an investor, you don't want to miss these.

Check out the videos now...

5 of the Best Stocks to Buy Now

best stocks to buy

Investors always want to know what are the best stocks to buy now.

That's why today, we are sharing a list of five stocks to own now for long-term growth.

Find out everything you need to know about our top picks, right here...

Should I Buy Spotify Stock?

Should I buy Spotify stock

Should I buy Spotify stock?

Investors want to know because the Spotify IPO could happen in the second half of 2017.

And before the hype starts around Spotify stock, we want to make sure our readers are prepared. Here's everything you need to know...

SMG Stock Outlook: 5 Things Shareholders Should Watch in Q1 2017 Earnings

SMG stock

The SMG stock price is underperforming the market in 2017 after climbing over 45% in the last 12 months.

But could the Q1 2017 earnings report from Scotts Miracle-Gro change that?

Here are five things to watch before the company releases its earnings report before the opening bell on Jan. 31...

Marijuana Investing in 2017 Just Got Even Brighter

marijuana investing

Just a few weeks ago, I released my marijuana investing forecast for the year ahead. If you haven't read it, I won't spoil it for you, but it was extremely bullish. And that says quite a lot when you think about the flood tide of legal victories and the nice returns cannabis investing has already brought in the past year.

Now, as I mentioned, some investors and sector-watchers are nervous given attorney general nominee Jeff Sessions' stated views on marijuana. They're not exactly progressive.

What's more, we're seeing legislative "pushback" in some state assemblies where voters just OK'd recreational marijuana use.

But I'm going to fill you in on what's really happening here, and then you'll see why my outlook is even stronger than it was earlier this month...

Why the Arctic Cat Stock Price Is Skyrocketing Today

Arctic cat stock

The Arctic Cat stock price today is skyrocketing over 40%.

That's because Textron Inc. is going to purchase the company.

Here's everything you need to know about the huge acquisition news...

How Does Snapchat Make Money?

how does Snapchat make money

How does Snapchat make money?

That's a critical question to ask before Snapchat's IPO date.

Here’s everything you need to know about how the young social media company makes money…

Meet the New Box, Same as the Old Box

Box

The "Trump Bump" rally was lots of fun while it lasted, but it's definitely over.

The markets have settled into the same "box" they were in in Q2 and Q3 2016.

But they're about to make a big move...

Don't Worry: Marijuana Investing in 2017 Will Be Even Better Than 2016

marijuana investing in 2017

By any measure, 2016 was a great year - a watershed, in fact - for the tech- and pharma-heavy cannabis niche.

For instance, ever since Sept. 2, when I sent my paid-up Nova-X Report readers the 30 pot stock recommendations in my "weed investors' bible," The Roadmap to Marijuana Millions, we've seen incredible gains all across the market sector.

And what had been a phenomenal year got even better with a massive victory: In November, voters in five states (read, five juicy untapped markets) voted to legalize medical and recreational marijuana. That boosted the cannabis niche's growth prospects immensely.

Remember, this is an investing arena that was already expected to grow by more than 31% a year until at least the early 2020s.

But... the buoyant marijuana markets took notice when the president-elect tapped Sen. Jeff Sessions (R-AL) to be the next U.S. attorney general. The nation's would-be top cop is known for his, shall we say, "retrograde" views on marijuana - legal and otherwise.

That news cast a great deal of uncertainty on investments with an otherwise vertical trajectory.

So, naturally, pot stock investors are wondering what the future might hold for this high-growth, immensely profitable investing niche.

Well, I'm going to show you a glimpse of that future right now. It still looks as bright and profitable as it ever did...

Five "Outrageous" Profit Plays We'll Make in 2017

profit plays in 2017

Turns out, my seatmate on a flight home last week is not only an avid reader of our work here, but also a huge "Varney & Co." fan and recognized me when we sat down next to each other.

We proceeded to have a terrific and very exciting conversation about the markets in general as we settled in for the nearly six-hour flight. Then, he asked the one question I couldn't resist answering any more than I could wait to share with you...

"Gimme five of the most outrageous opportunities you're tracking in 2017."

Here's what I shared with Roger...

The Secret to Superior Returns

superior returns

Many people are surprised to learn that dividend income and reinvestment can account for nearly 90% of total stock market returns over time.

That's right. Not a quarter... Not half... But 90%.

That's why placing a high priority on dividends in the Money Map Report's proprietary 50-40-10 Strategy is paramount to its success.

Unfortunately, this goes counter to the inclinations of far too many investors. They spend the bulk of their time chasing "the next hot stock" or searching for the next "sure thing."

No doubt we all love the elation that goes with being up 25%, 50%, 100%, or more.

Don't get me wrong, though. I'll take gains like that too - and we get more than our fair share in the Money Map Report model portfolio.

Yet, when it comes to consistently growing and protecting our money, I'd rather focus on getting the cold, hard cash that dividends kick off. That's because I know those are a much bigger component of overall investment returns over time.

I point this out because what most people fail to realize is that successful investing is a matter of continuous performance - not instantaneous performance.

Here's where it gets really interesting...

This Stock Offers High-Growth, Low-Stress Protection from Trump's Tweets

stock

By now we've all seen the "Trump Tweet Effect" in full effect these past weeks, as the president-elect's unfiltered social media messages hit some of Wall Street's favorite stocks, like Boeing, for better... or worse.

Lockheed Martin, for instance, one of our best defense plays, lost $4 billion in value in the aftermath of Trump's tweeted remarks about the F-35 Lightning program.

Frankly, the losses on Lockheed and Boeing, and for that matter the gains on SoftBank, say more about Wall Street traders than about Donald Trump - or the stocks he's talking about.

But the truth is, it's likely we can look forward to this kind of "volatility" from here on out.

Unless... you go with the recommendation I'm going to show you now.

It's offering explosive growth in a blue-chip package - 37% gains year to date, and I can't imagine any mere 140 characters are going to ding it...

I've Never Seen an Earnings Collapse Like This – Time to Move

earnings

I've spent years studying junk bond issuers, so I always get suspicious when I see a restaurant company, of all things, trading at high multiples of earnings, cash flow, or debt.

The restaurant business is notoriously risky, you see; there are few barriers to entry, fickle and economically sensitive consumers are at every turn, and it's extremely difficult to maintain high quality at any point on the price spectrum.

Still, it's not often you find a grossly overvalued (and overripe) company lying smack in the middle of the intersection of every single one of these very specific woes.

Yet that's exactly what I've found here.

In fact, I've just issued detailed trading instructions for profiting on this clunker to my Zenith Trading Circle readers, but this company is in such bad shape - such a perfect example of almost everything wrong with Corporate America today - that I had to let everyone know, so you can get the chance to profit now and later on, if a similar situation unfolds again.

Let's have a look at what my research has turned up - so long as you've got an empty stomach...

There's Huge Upside in the Worst Retail Disaster in History

retail

By all accounts, 2016's "Black Friday" was a success, surpassing $3 billion in sales for the first time in history. That might be welcome news for a retail industry that is now unambiguously in crisis, but most of the record spending was done online.

That's just another nail in the coffin for an industry that's seen a raft of bankruptcies lately, with mall-based fixtures like Sports Authority, RadioShack, Aéropostale, American Apparel, and PacSun all going belly-up.

I'm not trying to spoil anyone's festive mood, but it's my job to call it as I see it: This trend for these traditional retailers points straight down. No matter how much you personally spend this shopping season (and I do hope you get some good deals), the explosion of ecommerce, along with weak and/or increasingly selective consumers, makes traditional retailers' destruction inevitable.

But hardly anyone is falling faster or harder than this turkey, which means we have to move quickly...