Michael Kors Rallies Off LBO Rumors

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Michael Kors KORS shares are trading higher by $1.85 at $41.96 in Thursday's session. After a making a new low for the down move on Monday at $38.80, the issue is getting a boost on unconfirmed rumors that the company is attempting to line up $12B for a LBO at $60-$62 share. The Street is not putting much faith in the rumor as the issue has only reached $42.04t this time, which well shy of the proposed LBO price. The current intraday high is just shy of its July 16 high ($42.30) and over $1 away from its July 15 high ($43.46). Monday's low at $38.80 was flanked by three other lows in the same area ($38.88 last Friday, $38.88 on Tuesday and $38.94 on Wednesday). Today's rally is taking place on higher than average volume. So far, it has traded 5.4M shares compared with its 20 day average of 3.6 with less than two hours remaining the session.